n$2013,$ the U$.$S$.$ Federal Trade Commission allowed the number two and number three office supply$$ companies, OfficeMax Inc. and Office Depot$$ Inc., to merge. Office$$ Depot's market value was$$ $$1\mathrm{.}3$ billion, and$$ OfficeMax's was$$ $$933$ million.$$ Reportedly, the efficiency gains from merging would save the new company between$$ $$400$ and$$ $$500$ million.$$ However, in$2015,$ a federal judge agreed with the U$.$S$.$ Federal Trade Commission$($FTC$)$ and blocked a merger valued at$$ $$6\mathrm{.}3$ billion between Office Depot and$$ Staples, the largest office supply company. Why might the FTC permit the earlier merger attempt but not the$$ Staples$-$Office Depot$$ merger?

Part $2$

The FTC might not have blocked the the OfficeMax Inc. and Office Depot Inc. merger because

Part $3$

A$.$

the effects of

increased efficiencyincreased$$efficiency

were greater than the effects of lower production costs.

B$.$

the effects of increased production were greater than the effects from higher market prices.

C$.$

the effects of

cost savingscost$$savings

were greater than the effects from

reduced competitionreduced$$competition$.$

D$.$

the effects of increased competition were greater than the effects on combined firm profits.

E$.$

the effects of

greater market powergreater$$market$$power

were greater than the effects from increased firm revenue.