Unit Economics refers to the financial metrics that assess the profitability of a single unit of a product or service. It helps businesses understand how much revenue and profit they can generate from each unit sold, taking into account costs like production, marketing, and distribution. This analysis is crucial for determining the sustainability and scalability of a business model. By analyzing Unit Economics, companies can make informed decisions about pricing, investment, and growth strategies. It allows them to identify which products or services are most profitable and where to allocate resources effectively. Understanding these metrics is essential for long-term success and financial health.