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If you are driving too fast to see and avoid a pothole it is past a safe speed for the road conditions. Instead of relying on what a sign says is the safe speed, take it as a suggestion and work from there.
The concept that higher speed increases the capacity of a road is not hard to understand. Think of a hose, only so many molecules of water are able to fit in it at one time. To increase the number of molecules going through during a given period of time you can do two things, one increase the size of the hose, two increase the speed the water flows through the hose.
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