ECONOMY

Gasoline prices fell. The average national pump price of regular unleaded gasoline dropped 1.6 cents a gallon to $1.371 for the week ended Tuesday, the American Automobile Association reported.

The dollar strengthened for the second straight day in thin New York trading on reports from Europe that the Group of Seven, a monetary policy panel, might meet in January to discuss the dollar's decline.

The Treasury will discontinue its quarterly four-year note sales in 1991 and will auction five-year notes on a monthly basis instead of selling five-year two-month notes on a quarterly basis.

COMPANIES

Hasbro is re-evaluating whether domestic demand is strong enough to justify the costly promotion of Transformers, which made the company nearly $950 million during the past seven years.

Hartz Mountain will pay $45,000 to settle charges that it failed to report pet illnesses and deaths from a top-selling flea and tick repellent, the Environmental Protection Agency said. The pet product giant agreed to pay half of the original $90,000 in penalties, but it admitted no liability, according to a statement. The fines stemmed from a 1987 investigation into complaints from veterinarians and consumers about Blockade sprays for dogs and cats.

Hughes Aircraft, trying to diversify out of the defense industry, announced plans to enter the cellular telephone business. Hughes is a unit of GM.

Dominion Bankshares and Gannett were the only Virginia companies listed in Working Mother magazine's 1990 list of the 75 best companies for working mothers.

ACQUISITIONS

Contel and GTE shareholders overwhelmingly approved a $6.2 billion merger that will create the nation's second-largest cellular telephone company.

INTERNATIONAL

European Community citizens are overwhelmingly in favor of a central European bank, a common defense policy, a common currency and an EC role in foreign policy toward countries outside the Community, according to the autumn Eurobarometer poll published by the EC Executive Commission.

COURTS

Neil Bush and 12 other former Silverado directors, attorneys and executives of Silverado Banking, Savings and Loan, face an Oct. 7, 1991, trial date on a $200 million civil suit brought by the FDIC. The suit, brought in September, claims the defendants authorized excessive compensation to management and approved a series of loans and other transactions that drove the thrift into insolvency.

EARNINGS

Ames Department Stores reported a third-quarter loss of $183.2 million, compared to a restated loss of $1.6 million for the same period a year ago. The discount retailer attributed the poor results to restructuring charges of $129 million and difficulty selling the leases for more than 200 stores it closed under its reorganization plan. PEOPLE

David A. Solomon, a key figure in the prosecution of junk bond king Michael Milken, agreed to be barred from the securities business to settle an action brought by federal regulators.