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.