2.In formulation of an L..P model ,a problem has to be define ,the attention of the analyst shift to formulating the model. Just as it is important to define a problem, it is also important to carefully formulate the model that will be used to solve a marketing problem. Identify and discuss the L.P.M model steps.

3.The service marketing triangle , underlines the relationships between the various providers of services, and the customers who consume these services. As the name suggests, the service marketing triangle can also be used to market the service to consumers. The marketing completely depends on the interaction going on between the customer and the service provider. In detail, give all main relationship of marketing triangle

4.Diagnosing failure gaps in service quality, implementing and evaluating service quality is a difficult task. In the hopes of better understanding how a firm can improve on marketing and its overall service quality, the service quality process can be examined in terms of five gaps between expectations and perceptions on the part of management, employees, and customers. Discuss this gaps.

A large local government authority places orders for various stationery items at quarterly intervals. In respect of an item of stock coded A32, data are: 5000 boxes annual usage quantity minimum order quantity 500 boxes cost per box 2 Usage of material is on a regular basis and on average, half of the amount purchased is held in inventory. The cost of storage is considered to be 25% of the inventory value. The average cost of placing an order is estimated at 12.50. The chief executive of the authority has asked you to review the present situation and to consider possible ways of effecting cost savings. You are required to: (a) tabulate the costs of storage and ordering item A32 for each level of orders from four to twelve placed per year; (b) ascertain from the tabulation the number of orders which should be placed in a year to minimize these costs; (c) produce a formula to calculate the order level which would minimize these costs your answer should explain each constituent part of the formula and their relationships; (d) give an example of the use of the formula to confirm the calculation in (b) above; (e) calculate the percentage saving on the annual cost which could be made by using the economic order quantity system; (f) suggest two other approaches which could be introduced in order to reduce the present cost of storage and ordering of stationery. 25 marks

) Explain, with the aid of a diagram, the long run equilibrium position of a monopoly firm. (25 marks)

(b) If firms wish to enter a monopoly market they will face barriers to entry. Explain THREE of these barriers. (15 marks) (c) If a monopoly firm wishes to engage in price discrimination, certain conditions must apply. State and explain THREE of these conditions. (15 marks) (d) Irish semi-state transport companies are facing increasing competition. Discuss ONE possible advantage and ONE possible disadvantage of this development for: Consumers; AND Employees of semi-state transport companies. (20 marks)

[75 marks] 2. (a) Define the following types or degrees of price elasticity of demand: (i) Perfectly elastic demand; (ii) Perfectly inelastic demand; (iii) Elastic demand; (iv) Unitary elastic demand. (20 marks) (b) State and explain FIVE factors that affect price elasticity of demand. (25 marks) (c) A consumer spends 120 per month on a product when its unit price is 80c, and continues to spend 120 per month on this product when its unit price increases to 1. (i) Using the formula below, calculate the consumer's price elasticity of demand. Show all your workings.

Q P1 + P2 P Q1 + Q2 (ii) Is demand for this product elastic, inelastic or unitary elastic? (iii) Should the seller make any changes in the selling price of this commodity to increase overall revenue? Explain your answer. (30 marks) [75 marks] X Page 5 of 7 3. (a) (i) State the Law of Diminishing Marginal Returns. (ii) Using the table below, state after which level of employment diminishing marginal returns set in. Explain your answer. Number of persons employed 1 2 3 4 5 Total Output (in units) 14 30 50 64 76 Marginal Output (in units) 14 (15 marks) (b) The short-run average cost curve of a firm initially slopes downwards and afterwards slopes upwards. Explain why this is the pattern of short-run average costs. (15 marks) (c) It is generally agreed that the long-run average cost curve initially slopes downwards due to economies of scale and then slopes upwards due to diseconomies of scale. These economies and diseconomies can be both internal and external. (i) Define the underlined terms. (ii) Distinguish between internal and external economies of scale, giving TWO examples in each case. (30 marks) (d) While there can be advantages from producing on a large scale, the majority of firms in Ireland are small. Explain THREE reasons why small firms survive in the Irish economy. (15 marks) [75 marks] 4. (a) In relation to the factor of production Enterprise: (i) Distinguish between insurable risks and non-insurable risks and state TWO examples in each case. (ii) Explain TWO reasons why 'enterprise' is considered to be a unique factor of production. (25 marks) (b) (i) Explain what is meant by the term Marginal Efficiency of Capital (MEC). (ii) Discuss FOUR factors, other than MEC, which influence the level of investment by entrepreneurs. (30 marks) (c) Discuss the role of profits in promoting development in a modern market economy. (20 marks)

[75 marks] Page 6 of 7 5. (a) Discuss how economic development in less developed countries (LDCs) might be promoted: (i) by their own governments; (ii) by foreign governments / agencies. (30 marks) (b) (i) Discuss THREE economic benefits of economic development to LDCs. (ii) Discuss THREE economic costs of economic development to LDCs. (30 marks) (c) Discuss steps which could be taken to solve the debt crisis which LDCs are experiencing. (15 marks) [75 marks] 6. (a) Explain the following terms which are commonly used in estimating the National Income statistics of a country: (i) Incomes-in-kind; (ii) Transfer Payments; (iii) Net Factor Income from the Rest of the World. (20 marks) (b) The table below shows the levels of National Income, Consumption, Investment, Exports and Imports at the end of Year 1 and Year 2. (For the purpose of this question you may ignore the government sector.) Year National Income Consumption Investment Exports Imports 1 5,000 4,300 500 600 400 2 5,600 4,750 650 750

Calculate the following, showing all your workings: (i) The level of Imports in Year 2. (ii) The Marginal Propensity to Import. (iii) The Marginal Propensity to Save. (iv) The size of the Multiplier. Explain the economic meaning of this figure.