The prime minister of the tiny island nation of Wowza has proposed that the speed limit on its only highway be reduced by 10 miles per hour on Thursdays. Enacting this proposal would be optimal
A) only if the marginal cost of reducing the speed limit falls to zero.
B) as long as the marginal benefit of reducing the speed limit is just equal to or greater than the marginal cost of reducing the speed limit.
C) as long as the marginal cost does not rise.
D) until the marginal benefit of this action is maximized.
Answer: B
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