If a metal stamping plant produces negative externalities, who tends to benefit?

Question

Quizplus · Accepted Answer

Negative externalities occur when the production or consumption of a product results in a cost to a third party. In the case of a metal stamping plant, the negative externalities (such as pollution) do not directly affect the firm or its customers in terms of costs. Instead, these externalities are often ignored in the pricing of the product, potentially leading to lower costs for the firm and lower prices for its customers. This can be seen as a benefit to both the firm and its customers, as the firm can operate with lower costs and the customers can enjoy lower prices, all while the negative impacts are borne by others (e.g., the local community, environment).

If a Metal Stamping Plant Produces Negative Externalities, Who Tends