An auction house is selling a machine that your company (TNT) wants. Rules of the auction: Submit a written bid by this Friday 5pm. . The highest bid wins the machine and pays a price equal to the bid i.e. first price auction setup. Bids must be in increments of R100, 000 & the minimum bid is R100, 000. . Maximum possible bid is R500, 000. . If the bids are equal, then the auctioneer flips a coin to determine the winner. The machine is worth R400, 000 to your company (TNT). If you win the item, your payoff equals R400, 00 minus the price you paid. If you don't win, your payoff is zero if you end up paying R400, 000 you are no better off while you are better off if you get it for less than R400, 000. You have just learnt that there is only one other bidder: your competitor M&H Ltd. You know that M&H values the machine at R300, 000 and; M&H knows that your company (TNT) values it for R400, 000. (i) Translate this game into normal form. [14 marks] (ii) How much should you bid? [use both IESDS and IEWDS]. [6 marks]