The Biggest Star of Super Bowl LVII Commercials? Nostalgia

Although a range of companies are advertising during Super Bowl LVII, a common theme runs through many of the spots: nostalgia. The Super Bowl is advertising’s biggest stage. Last year, more than 208 million people watched the big game. This year, a 30-second ad costs about $7 million.—cbsnews.com

Answer the following questions to check your understanding of the story.

1) Why would a firm spend $7 million on a 30-second Super Bowl ad emphasizing nostalgia and giving no specific product information?

A $7-million Super Bowl ad that emphasizes nostalgia and gives no specific product information is a signal to the ____________ of a high-quality product, and the advertiser expects it will ____________.

a) consumer; increase total revenue by more than $7 million

b) consumer; increase its share of the market

c) advertiser’s competitors; increase its share of the market

d) advertiser’s competitors; increase total revenue by more than $7 million

2) How does the purchase of a $7-million Super Bowl ad influence a firm’s costs?

The firm’s ________________.

a) total fixed cost increases by $7 million

b) total variable cost increases by $7 million

c) marginal cost increases by $7 million

d) average total cost decreases

The Biggest Star of Super Bowl LVII Commercials? Nostalgia

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