Economics of one unit (EOU)

Economics of one unit (EOU),

Definition of Economics of one unit (EOU):

  1. Method used to determine whether a business model can be successful (profitable), by calculating if an individual unit of the good or service would be profitable. For example, if Mike is considering opening a store which sells pizza, he would calculate the cost of making one individual pizza, and compare it to the price he would charge for the pizza. If the profit is positive, the business is thought to be profitable.

Meaning of Economics of one unit (EOU) & Economics of one unit (EOU) Definition