In the context of economics, when does a channel of distribution end?

• A. When the product is advertised to potential buyers
• B. When the product reaches the final consumer
• C. When the product is shipped from the manufacturer
• D. When the product is stored in a warehouse

Answer: (B)

Verified step by step guidance

1. Understand the concept of a 'channel of distribution' in economics: it refers to the path or route through which goods and services travel from the producer or manufacturer to the final consumer.
2. Identify the key stages in the distribution process, which typically include manufacturing, storage, transportation, wholesaling, retailing, and finally reaching the consumer.
3. Recognize that the channel of distribution ends when the product reaches the final consumer because this is the ultimate destination where the product is used or consumed.
4. Note that activities like advertising, shipping from the manufacturer, or storing in a warehouse are intermediate steps within the distribution channel, not the endpoint.
5. Conclude that the defining characteristic of the end of the distribution channel is the transfer of the product into the hands of the final consumer, completing the distribution process.