A major highway has been built at a cost of US$175 million between Nairobi, Kenya and its suburbs. This reduces travel time and increases safety, but there are environmental problems for small enterprises along its route.
Who bears the external costs of this project?
1 )
the authorities who paid for the highway
2 )
the commuters who travel to work in Nairobi
3 )
the construction companies that built the highway
the small enterprises along the route
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