When a producer chooses a channel strategy that does not involve any intermediaries, they are using:

• A. Indirect distribution
• B. Direct distribution
• C. Vertical integration
• D. Dual distribution

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of distribution channels in microeconomics, which refers to the path a product takes from the producer to the final consumer.
2. Step 2: Recognize that 'Direct distribution' means the producer sells the product directly to the consumer without involving any intermediaries such as wholesalers or retailers.
3. Step 3: Identify that 'Indirect distribution' involves one or more intermediaries between the producer and the consumer.
4. Step 4: Note that 'Vertical integration' refers to a firm owning multiple stages of production or distribution, but it does not necessarily mean no intermediaries are involved.
5. Step 5: Understand that 'Dual distribution' means using more than one distribution channel simultaneously, which can include both direct and indirect channels.