When Hope Springs develops its flavored water additive and uses the college town where Gabbie and Justin are students to gauge if there is ample product interest, the company is engaged in a est market.

a. segmented test market
b. simulated test market
c. geographic test market
d. controlled test market
e. standard test market

Over time, the local Telephone company will most likely permit an increase in their company's cost.

Explanation:

The average cost pricing rule is a pricing strategy that government impose on certain businesses to limit what they are able to charge consumers for its products or services to a price equal to the costs necessary to create the product or service.

This implies that businesses will set the unit price of a product relatively close to the average cost needed to produce it.

Under profit regulation or average-cost pricing, the telephone company's wish to maximize profit can only be effective under the government's regulation if they allow their cost to increase.