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Dead-weight loss in industries with market power is a result of:

A. profit-maximizing output occurs where price equals marginal revenue.

B. profit-maximizing output occurs where price exceeds marginal cost.

C. profit-maximizing output occurs where price equals marginal cost.

D. profit-maximizing output occurs where price exceeds average total cost.

E. profit-maximizing output occurs where price equals average total cost.

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The Dead weight loss occurs due to charging any price that exceeds marginal cost.

Hence, the correct option is (B) profit-maximizing output occurs where price exceeds marginal cost

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