Producers may stay in business even if there is no profit to be gained from doing so for a variety of reasons. For example, a producer may stay in business to maintain a presence in the market, to maintain relationships with customers, to maintain a competitive advantage, to maintain a certain level of quality, or to maintain a certain level of employment. Additionally, a producer may stay in business to avoid the costs associated with shutting down operations, such as the costs of liquidating assets or the costs of severance pay.
