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

A negative externality is a situation where an action by one party causes harm to others who are not involved in that action. For example, if a factory produces goods but also releases pollution into the air, the nearby residents suffer from poor air quality and health problems, even though they are not part of the factory's business. This pollution is the negative externality because it negatively affects people who are not involved in the factory's production process. The factory may not take this harm into account when deciding how much to produce, leading to a situation where the overall welfare of the community is reduced. Therefore, understanding negative externalities is important to help create laws or regulations that protect people's well-being while allowing businesses to operate.