Economic feasibility refers to the assessment of whether a project or investment is financially viable. It involves analyzing costs, potential revenues, and overall profitability to determine if the benefits outweigh the expenses. This evaluation helps stakeholders make informed decisions about whether to proceed with a project. In conducting an economic feasibility study, various factors are considered, such as market demand, competition, and resource availability. Tools like cost-benefit analysis and break-even analysis are often used to quantify the financial implications. Ultimately, the goal is to ensure that the project aligns with the financial goals of the organization or investors involved.