Even when not making any economic profit, a firm makes an accounting profit, this is usually a sufficient reason for the firm to permanently operate at this price, especially when the rate of market return is equal to or lower than the company's accounting profit. However, if the market rate of return is greater than the break-even price, the company is suffering an economic loss. This would still seem like a profit to an accountant. Miller, R. (2012). Perfect competition. In Economics Today The Micro View (16th ed., p. 515). Boston, MA: Pearson Addison-Wesley.3. An upscale bistro in a small town charges higher prices for the same menu items at dinner time than at lunch time. Does the bistro necessarily practice price discrimination? Explain your answer. --Answer below: The bistro does not necessarily practice price discrimination, I personally believe it would be price differentiation because the operating costs of operating the bistro for dinner are most likely higher and the demand is higher. Operating costs are higher due to staffing needs for the dinner rush, more cooks and greeters are needed to handle the diner's higher volume of customers. If the customer and demand load is similar to lunchtime, then they are charging the price