The accompanying table represents the quantity produced, the total revenue, and the total cost of a firm operating in a perfectly competitive market.

Quantity	Total Revenue	Total Cost
0	$0	$3
1	$5	$5
2	$10	$9
3	$15	$13
4	$20	$19

Profits are maximized when the firm produces ________ unit(s).

1. 0
2. 1
3. 2
4. 3

Step 1: Select the option you believe is correct.

Step 2: Justify your choice by either explaining its correctness or identifying an incorrect option and discussing why it is not correct. Utilize the theories covered in the course for your explanation, and provide necessary calculations to support your argument, if required.