The government is auctioning off oil leases at two sites: 1 and 2. At each site, 100,000 acres of land are to be auctioned. Cliff, Blake and Alexis are bidding for the oil. Government rules state that no bidder can receive more than 40% of the land being auctioned. Cliff has bid $1000 per acre for site 1 land and $2000 per acre for site 2 land. Blake has bid $900 per acre for site 1 land and $2200 per acre for site 2 land. Alexis has bid $1100 per acre for site 1 land and $1900 per acre for site 2 land. The government would like to maximize revenue from these bids.
a. Formulate this model and implement it in a sheet.
b. Solve the model you have formulated using Solver. Report the important decisions that the company must make. How much money will the solution yield for the government?