Answer:
B. ignore any price increase and match any price decrease by a rival firm.
Step-by-step explanation:
The kinked demand curve model is used by economists to provide information about the monopolistic and oligopolistic market.
Under oligopoly, the kinked demand curve shows that price aren't flexible for a long period of time. The kindred demand curve is associated with a demand curve that isn't a straight line but has varying elasticity for both lower and higher prices in the economic market.
Hence, organizations operating in an oligopolistic market ensure their market shares are maintained and well protected. Thus, an oligopolist would lower it's selling price if its competitors in the market lower their selling price. However, he or she ignores any price increase by his or her competitors.
The kinked demand curve model helps them to understand how to protect and expand their market share.