I think the point of the question is more to point out the ineptitude of his IT Managers and ask what people think about that.
As far as actually responding I would simply say that it is web browser with the second largest market share out there (as high as 25% depending on whos numbers you believe). You could briefly mention increased performance, security and it's high adoption rate among computer enthusiasts.
It is a bit troubling that your IT Manager hasn't gotten his feet wet enough in the field to know something as basic as what Firefox is. At the companies I have worked for the only path to becoming an IT Manager was to raise in the ranks from the IT field itself but I guess some companies don't mind hiring some suits with no experience.
Like Jeff says, in order to be a project or IT manager you need to know enough tech to know if the people you are managing are lieing to you (i.e. we are going to need two more weeks to make the flimflam work with the doohickie).
This reminds me of a UK based tv show "The IT Crowd". Here is a little quote from it's synopsis:
Jen, the newest member of the team, is hopelessly non-technical, despite claiming on her CV that she has "a lot of experience with computers". As Denholm, the company boss, is equally tech-illiterate, he's convinced by Jen's interview bluffing and appoints her head of the IT department. Her official title is "relationship manager", yet her attempts at bridging the gulf between the technicians and the business generally have the opposite effect, landing Jen in situations just as ludicrous as those of her team-mates.