Why is the shutdown point critical for a firm's decision-making in the short run?

• A. It determines the point at which the firm can cover its total costs.
• B. It determines the minimum price at which the firm can cover its variable costs and continue production.
• C. It determines the point at which the firm can maximize its profit.
• D. It determines the maximum price at which the firm can cover its fixed costs.

Answer: (B)