For those who haven’t heard, 43 year old ex-militant, High Chief Government Oweizide Ekpemupolo (aka Tompolo) on Monday 26th August 2013 received his LearJet 60SE produced by Canadian aerospace company Bombardier. The Jet according to aviation sources cost a whopping sum of $13.3 million (N2.12 billion).
The Opportunity Cost Of Bombardier 60SE Learjet
Economist define opportunity cost as the alternative forgone. It is the cost of an alternative that must be forgone in order to....
pursue a certain action. Put another way, it is the benefit you could have received by taking an alternative action. In layman’s terms, opportunity cost is the other product that would rather have satisfied your want.
An Example: If you need a Plasma Television and an iphone; and you divert your limited resources to purchase the iphone, the opportunity cost (i.e. what it is costing you) is a Plasma Television set.
Investopedia cites this vivid example: if a gardener decides to grow carrots, his or her opportunity cost is the alternative crop that might have been grown instead (potatoes, tomatoes, pumpkins, etc.).
In both cases, a choice between two options must be made.
A LearJet 60SE cost $13.3 million (N2.12 billion), a N2.12 billion we could have invested into other productive ventures had the contract not been awarded to Tompolo in the first instant.
The opportunity cost of Tompolo's private Jet are enormous, I have defined what opportunity cost is, please fill up the comment section with your suggestions of public goods we could have purchased with our collective N2.12 billion in the hands of an ex-militant.
Culled - Kikiowo Ileowo (The Opportunity Cost Of Tompolo’s Private Jet)
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