Production Function Estimation (16 points) Sophie's Fashion Boutique (SFB) is a private firm producing dresses. It mainly uses sewing machines and hires labor for the production. Sophie pays $15 per labor hour. And the cost of using a sewing machine per month (which includes depreciation and interest payments) is $20. (Please see the excel file in the portal).

a) Use the data to estimate the "production function" for SFB (i.e. the relationship between the quantity of dresses, the number of sewing machines, and the working hours used). Assume the production can be best described by a Cobb-Douglas production function. Include the regression results from Excel in your assignment.(Hint: for all estimated coefficients carry 4 non-zero digits to the right of the decimal).

b) Use your estimated producing function from part a) to find the optimal combination of sewing machines and working hours that produces 2, 000 dresses per month.

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