The pool costs $400,000 with 2 lanes. Each additional lane would cost $300,000. The city Park & Recreation Board is a bureaucracy that overview the center construction. The Board are the slack maximizer. Use this to answer the following 2 questions.
(Please provide sufficient detail explanation in word format , not in hand-writing)
12. According to the Niskanen's model of slack maximization, the Board will propose
a. to build the center with no swimming pool
b. the swimming pool with 2 lanes
c. the swimming pool with 3 lanes
d. the swimming pool with 4 lanes
13. According to the Niskanen’s model of slack maximization, the Board will request what budget for the pool?
a. $1,000,000 b. $1,200,000 c. $1,800,000 d. $2,200,000
According to the Niskanen's model of slack maximization, bureaucrats always try to maximize their budget by supplying maximum. They do not pay heed towards the efficiency.
12)
Right answer: (D)
Board will seek to maximize the budget by supplying maximum.
13)
Right answer: (D)
Department or board will vouch for maximum budget.
The pool costs $400,000 with 2 lanes. Each additional lane would cost $300,000. The city Park...