(Vertical Separation vs. Vertical Integration) Regarding vertical separation and vertical integration, find which statement below is true a. If in vertical separation the manufacturer raises its wholesale price, it will increase the cost for the retailer and thus hurt the retailer's profit. (b. Vertical integration generates a higher total profit for the manufacturer and the retailer because it reduces the conflict of interest between them. effin vertical separation the retailer raises its retail price, It won't impact the manufacturer's profit. d. None of the other choices are correct. In vertical separation the retail price is directly based on the manufacturer's marginal cost. Vertical Integration generates a higher consumer surplus than vertical separation because vertical integration leads to a higher retail price for consumers