Question: When Staples and Office Depot proposed merging in 1997, the Federal Trade Commission (FTC) rejected the merger. In analyzing the impact of the merger, the

When Staples and Office Depot proposed merging in 1997, the Federal Trade Commission (FTC) rejected the merger. In analyzing the impact of the merger, the FTC looked at the prices of the following quantities:

  1. A Pentium 166 computer with 16 meg of RAM, 10-speed CD-ROM, and 2g hard drive (labeled Computer) m
  2. A desk, filing cabinet, 10 reams of computer paper, and a laser printer (labeled Office)
  3. 10 notebooks, 5 boxes of pencils, a book bag, 10 boxes of crayons (labeled School)

The file P2_89.XLS contains data on these variables for several cities. For example, the first city had both a Staples and an Office Depot, and a computer cost $1979.31. The second city had only a Staples, and the school supplies cost $179.86. Based on these data, can you explain why the FTC rejected the merger?

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