The correct answer is: Neighboring businesses
Becuase an externalties is the third party affected. Factory workers would be the first party affected, thus not an externality.
A negative externality in the given statement is the neighboring businesses.
Option D is the correct answer.
An externality can be the cost or advantage that is received or incurred by the third party which is not related.
An externality can be positive or negative depending on the result of production. A positive externality can occur when the production or consumption leads to a benefit to the third party whereas a negative externality resulted in the incurrence of cost by the third party from production or consumption.
Therefore, the neighboring businesses would be an unrelated third party which is considered a negative externality.
Learn more about the externality in the related link:
https://brainly.com/question/24233609
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