How prices will go up and down from current levels


Problem: Assume a manufacturer in a supply chain decides it wants more control over its products all the way to the end user. So, they decide to vertically integrate all the way through to the retail level and then sell directly to the end consumer. Please explain the kind of situation where this might be a good idea in that efficiencies will be realized and prices will go down from current levels and when will this be a bad idea and prices will go up from current levels?

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