The table below contains information about the production, costs and profits of a firm.

The price faced by the firm in a perfectly competitive market is $50 per unit. Identify the output level at which profits are maximised.

Total Average Average Average Total Fixed Variable Marginal Variable Fixed Total Output Costs Costs Costs Costs Costs Costs Profits 0 24.00 1 24.00 40.00 40.00 40.00 -14.00 2 24.00 75.00 35.00 37.50 49.50 W 20.00 31.67 4 22.00 29.25 143.00 26.00 28.60 174.00 29.00 212.00 30.29 8 24.00 260.00 48.00 116.00 24.00 320.00 60.00 10 24.00 396.00 39.60 2.40 42.00