In 1990,a 30-Second Ad During the Super Bowl Cost $700,000

question 12

Multiple Choice

In 1990,a 30-second ad during the Super Bowl cost $700,000.By 2013,the cost had soared to $3.8 million for a 30-second spot.The MOST LIKELY reason for the escalating cost is that

• A)the number of TV viewers for the Super Bowl since 1990 has grown substantially.
• B)the ads are much more elaborate and therefore more expensive to produce.
• C)the NFL knows advertisers will pay anything it wants.
• D)the ad agencies have dramatically increased their creative and production fees.
• E)the companies that create Super Bowl ads do not have to run any other ads all year long.

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Definitions:

Raw Materials

Basic substances in their natural, modified, or semi-processed state, used as inputs for manufacturing finished goods.

Unit Level Cost

Costs that are incurred for every unit of production, such as direct materials and direct labor.

Bottle Labels

Printed materials affixed to a bottle that provides product information, branding, and regulatory compliance details.

Regression Formula

The Regression Formula is used in statistics to determine the relationship between independent variables and a dependent variable, predicting the latter based on the formers' values.