The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________.  

For the firm in Figure 8.1, the profit-maximizing (loss-minimizing) price and level of output are:

A) P2 and Q2. B) P1 and Q1. C) P4 and Q1. D) P3 and Q1.

Which of the following is an example of a horizontal merger?

a. the consolidation of marketing, processing and purchasing departments by Armour Meat Company b. the purchase of E.C. Knight Company by American Sugar Refining Company c. the purchase of Colorado silver mines by the Tiffany Jewelry Company d. Federal Steel Company's alliance with American Bridge Company