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Case: We R' Write produces pens and pencils for sale. We R' Write also belongs to The Pen Makers Society of America. This society has numerous lobbyists in Washington, DC, attempting to get a bill passed that would provide subsidies for the nearly 50 pen makers in the United States for making pens. These subsidies will be paid by adding an additional $0.25 on to every school lunch provided in public schools across the United States. However, the National Parent Teachers Association (National PTA) also has lobbyists in Washington, DC, who are trying to block this bill.
Question 1: Would you characterize We R Write's products as private goods, public goods, natural monopolies, or open-access goods? Explain why you arrived at this conclusion.
Question 2: Describe the type of legislation that The Pen Makers Society of America is attempting to get approved. Does this legislation fit into one category or many? Why?
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