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What is Unit Economics?
Unit Economics evaluates profitability per unit sold or used, guiding pricing strategies and cost management. Businesses break down revenue and expenses per occupant, customer, or transaction to measure long-term viability.
Key Points:
- Revenue per Unit: Income from a single occupant, user, or sale.
- Cost per Unit: Production, operational, and acquisition expenses.
- Break-Even Analysis: Identifies when revenue surpasses costs.
- Scalability Measurement: Determines if growth improves margins.
Strong unit economics indicate financial sustainability and long-term growth potential.
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