Problem: Suppose the military bureaucracy consistently misinforms Congress on the total costs of producing military hardware. Assume that it underestimates the actual costs and that the political representatives believe these estimates. How is this likely to cause a loss in efficiency? What are the efficient outputs of military hardware and the outputs desired by the military bureaucracy? How will the output chosen differ from the efficient output even if Congress attempts to achieve efficiency? In your answer, assume that the military seeks to maximize the size of its budget.