Final answer:
Small 'Mom and Pop firms' can exist without earning economic profits due to various motivations such as passion, community service, and self-employment.
Step-by-step explanation:
Small 'Mom and Pop firms,' like inner city grocery stores, sometimes exist even though they do not earn economic profits. This can be explained by the fact that these types of businesses are often motivated by other factors besides making money. For example, they may be driven by a passion for the industry, a desire to serve their community, or a need for self-employment. These businesses may prioritize intangible rewards such as personal fulfillment, community connection, and work-life balance over financial profit.