The firm producing bricks, which is

established at Duwakot of Bhaktapur, sets the price of brick

considering its cost of productions and some margins for

the profits. That is, firm just considered the private cost of

producing the bricks but not the social cost as a whole.

Social cost is the cost bear by the society due to dust and

the health problems. Society later ask government to

impose the tax so as to increase the price so that it reflects

true social cost and compensate them for the cost due to

this brick industry. (Explain positive and normative