"An industrial estate is to be established in the heart of an agricultural area. The industrial area will house a number of
chemical firms which will produce, package and distribute the chemical to local, regional and international users.
However the agricultural area is noted international as a green field in that they produce products organically (without
chemical)."
a. What effects does externalities have on market forces? (5 marks]
b. With reference to the passage, identify five externality concerns of the farmers. [5 marks]
C. Advance five solutions to the problems identified in b above. [5 marks]
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