You have probably noticed that sometimes when a company decides to advertise the

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You have probably noticed that sometimes when a company decides to advertise the

You have probably noticed that sometimes when a company decides to advertise their product, another company in the same industry tends to advertise too. This is particularly true with the wireless service industry. For example: when AT&T decides to advertise, Verizon will likely advertise too. Based on this context, answer the following questions:
Discuss what market structure these companies belong to. Make sure to explain the characteristics of the market structure.
Describe some of the barriers to entry faced by wireless companies.
Explain how companies in this market structure maximize their profit.
Discuss why AT&T would spend their money advertising when they know that Verizon will always counter it with their own advertisement.

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