A firm should shut down its operations in the short run if it cannot cover it’s

✅Explanation:
In the short run, some costs (fixed costs) are unavoidable even if production ceases. A firm should consider shutting down only if it cannot cover its variable costs, which are the costs that change with the level of output produced.

📌 Other Options Explained:
-a) Fixed Cost: Fixed costs are expenses that remain constant in the short run regardless of the production level (e.g., rent, salaries of administrative staff). Even if a firm shuts down, it might still have to pay some fixed costs.
-c) Overhead Cost: Overhead cost is a type of fixed cost that encompasses indirect expenses related to running the business (e.g., utilities, office supplies). It's part of the total fixed cost.
-d) Time Cost: Time cost is an opportunity cost, not a direct financial expense. It refers to the potential profits a firm forgoes by not pursuing other opportunities. It's not a factor in short-run shutdown decisions.

🛑 Related Terminology:
-Short Run: A time period in which a firm cannot change its fixed factors of production (e.g., factory size, machinery).
-Long Run: A time period in which a firm can change all its factors of production, including fixed factors.
-Break-Even Point: The level of output where total cost equals total revenue, resulting in zero profit or loss.