Which of the following is a primary reason that firms like to advertise during the Super Bowl?

• A. The Super Bowl provides access to a large and diverse audience, increasing the potential consumer surplus from advertising.
• B. Super Bowl advertisements are less expensive than regular television ads.
• C. Advertising during the Super Bowl guarantees that all viewers will purchase the advertised product.
• D. Firms are required by law to advertise during the Super Bowl.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of advertising in microeconomics, which is primarily used by firms to increase demand for their products by informing or persuading potential consumers.
2. Step 2: Recognize that firms aim to maximize their return on advertising expenditure by reaching as many potential customers as possible, ideally a large and diverse audience.
3. Step 3: Analyze the options given: advertising during the Super Bowl is known for its large viewership, which means firms can reach a broad and diverse group of consumers in one event.
4. Step 4: Consider why the other options are less plausible: Super Bowl ads are typically very expensive, there is no guarantee all viewers will buy the product, and there is no legal requirement to advertise during the Super Bowl.
5. Step 5: Conclude that the primary reason firms like to advertise during the Super Bowl is because it provides access to a large and diverse audience, which increases the potential consumer surplus and effectiveness of the advertising.