Economic viability refers to the ability of a project, business, or initiative to generate sufficient income to cover its costs and sustain itself over time. It assesses whether the financial returns justify the investments made, ensuring that resources are used efficiently. This concept is crucial for entrepreneurs and investors when deciding whether to pursue a particular venture. Factors influencing economic viability include market demand, competition, operational costs, and potential revenue streams. For example, a new business must evaluate its target market and pricing strategy to determine if it can achieve profitability. Understanding these elements helps stakeholders make informed decisions about resource allocation and long-term planning.