Which of the following is a common example of a negative externality?

A common example of a negative externality is pollution from a factory. When a factory produces goods, it may release smoke and waste into the air and water, affecting the health and environment of nearby residents. These residents suffer from poor air quality and may face health problems, but they are not compensated by the factory for this harm. This situation shows how the factory's actions have negative effects on people who are not involved in its production process. Thus, the factory's production creates costs for society that are not reflected in the price of its goods.