Problem
1. Why does the profit-maximizing strategy of a firm with market power create a deadweight loss?
2. Why do firms with market power have only demand-and not supply-curves?
3. Firms with market power respond differently to changes in consumers' price sensitivity than do perfectly competitive firms. Explain why this is true.
4. Name some regulations the government imposes on firms with market power.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.