Disintermediation can have the overall effect of increasing margins for manufacturers and lowering consumer prices.

Question

Quizplus · Accepted Answer

Disintermediation involves removing intermediaries between a manufacturer and the end consumer, which can result in lower costs for the manufacturer and potentially lower prices for the consumer. As a result, manufacturers may see increased margins while consumers enjoy lower prices.

Disintermediation Can Have the Overall Effect of Increasing Margins for Manufacturers