1. You are a jeweler so you can buy and sell gold at the market price. You can use the gold to make into rings to sell. Suppose last month you bought 1 ounce of gold for $1,600.

a. The current market price of gold is $1,700 an ounce. If a customer asks you to use the gold to make into a ring, what is the opportunity cost of using the gold?

b. The current market price of gold is $1,500 an ounce. If a customer asks you to use the gold to make into a ring, what is the opportunity cost of using the gold?