How did the factory system impact towns? a. towns were replaced by factories. b. factories replaced towns as places to live. c. towns grew around factories and specific industries. d. factories had no impact on towns.

The correct option is C. Towns grew around factories and specific industries.
This is becasue the factory system concentrated workers in  towns, because the new factories had to be located near water sources and transportation systems(alongside waterways,railways). This trend often led to crowded, substandard housing for the workers