You are introducing a new vacuum cleaner design in a tropical society which works well under humid conditions. The vacuum cleaner is produced under increasing returns, so that the unit cost of production declines with the price. Discuss how the following factors affect your likelihood of success:

(a) The proportion of the population who already use vacuum cleaners,

(b) The per capita income of the society,

(c) The market for loans, and

(d) The flow of information. If vacuum cleaners are produced under decreasing returns to scale, which of these factors continue to be important?