Final answer:
The question focuses on identifying a step not involved in recognizing profit pools, which commonly include defining boundaries, sizing, understanding competitors, and value-chain analysis. Instead, the provided information emphasizes the importance of analyzing the firm's cost structure for profitability.
Step-by-step explanation:
The question pertains to the steps involved in identifying profit pools in an industry. These steps typically include defining the boundaries of the profit pool, estimating the overall size of the pool, understanding the competitors within that pool, and estimating the size and value of each value-chain activity within the profit pool. However, the question presents a scenario that is somewhat different from these typical steps. It asks to identify a step that is not involved in the process. The provided information suggests that the student should focus on understanding the cost structure, which includes fixed and variable costs to calculate total cost, average variable cost, average total cost, and marginal cost. Combining this cost analysis with an understanding of sales, revenue, and market structure is essential for making final decisions regarding the profit-maximizing quantity of production and pricing strategies.