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Miracle Pill

question 66

Multiple Choice

Miracle Pill.Katie advertised that she had developed a pill for women that would result in weight loss,wrinkle loss,and improved vitality; and for men would result in all those things,plus hair growth.Her television advertisement showed miracle results allegedly obtained by consumers.Katie cautioned,however,that ingestion of the pill for six months was required before results would be evident.The pill was wildly popular.The Federal Trade Commission,however,investigated and determined that Katie had failed to have a reasonable basis for the claims she made in advertisements.Katie claimed that she was merely involved in the use of generalities and clear exaggerations.The Federal Trade Commission disagreed and issued a formal administrative complaint against her.After a hearing,the Federal Trade Commission issued an order requiring that Katie stop advertising and selling the pills.After losing all appeals,Katie continued selling the pills until she was fined by the Federal Trade Commission.She has since left the country and cannot be located.Who would have presided over the hearing involving the administrative complaint filed against Katie by the Federal Trade Commission?

Definitions:

Pure Competition

A market structure characterized by a large number of small firms producing identical products, with no single firm able to influence the market price.

Commodity Products

Basic, undifferentiated products or raw materials that are interchangeable with others of the same type.

Agribusinesses

Companies involved in the agricultural industry, dealing with the production, processing, and distribution of agricultural products.

Pure Monopoly

A market structure where a single seller produces a unique product with no close substitutes, having complete control over the market price.