Find the profit maximising output level from the following data.

8

The correct answer is option 3: 8

To find the profit-maximising output level, we calculate profit at each quantity by subtracting total cost (calculated as average total cost multiplied by quantity) from total revenue (price multiplied by quantity). At a quantity of 7, the profit is ₹28; at 8 units, it rises to ₹32; at 9 units, it drops to ₹18; and at 10 units, it becomes zero. Since the highest profit of ₹32 is achieved when 8 units are produced, the profit-maximising output level is 8 units.