We develop a systematic theory of microwave-induced oscillations in the magnetoresistivity of a two-dimensional electron gas, focusing on the regime of strongly overlapping Landau levels. At linear order in microwave power, two novel mechanisms of the oscillations (``quadrupole and ``photovoltaic) are identified, in addition to those studied before (``displacement and ``inelastic). The quadrupole and photovoltaic mechanisms are shown to be the only ones that give rise to oscillations in the nondiagonal part of the photoconductivity tensor. In the diagonal part, the inelastic contribution dominates at moderate microwave power, while at elevated power the other mechanisms become relevant. We demonstrate the crucial role of feedback effects, which lead to a strong interplay of the four mechanisms in the nonlinear photoresponse and yield, in particular, a nonmonotonic power dependence of the photoconductivity, narrowing of the magnetoresonances, and a nontrivial structure of the Hall photoresponse. At ultrahigh power, all effects related to the Landau quantization decay due to a combination of the feedback and multiphoton effects, restoring the classical Drude conductivity.
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