One aspect of a monopolist is the immense amount of pricing power that they have in the marketplace. Answer the following questions regarding the pricing power of a hypothetical monopolist:
1. At which point along the demand curve would a monopolist theoretically stop raising prices? Explain.
2. Compare and contrast the monopolist to the perfect competitor. Why is the perfect competitor a price-taker and the monopolist a price-maker? Explain.
3. Explain the role that government regulation plays in controlling the otherwise monopolistic tendencies of a real-world market for which there is largely only one supplier of a product or service.