When evaluating an investment's potential in the context of long-run supply, which of the following factors is essential in understanding future benefits and resource allocation while managing risk assessment?

When evaluating an investment's potential, it is essential to consider the demand for the product or service that the investment will support. Understanding long-run supply means looking at how much of a product can be produced sustainably over time, which directly depends on consumer demand. For example, if a company invests in producing electric cars, they need to assess whether people will want to buy them in the future as demand shifts towards greener options. Additionally, managing risk involves considering external factors like changes in technology, regulations, or market trends that could affect that demand. By carefully analyzing these elements, investors can make more informed decisions about where to allocate their resources for the best long-term benefits.