For the production function, Q = AK∝LB, where A, ∝, β > 0, which of the following statement(s) are correct?
A. Degree of homogeneity is 1
B. Output elasticity with respect to capital is ∝
C. It exhibits constant returns to scale
D. Marginal product of a factor = Average product of the factor
Choose the correct answer from the options given below:
1
A & B Only
2
B & C Only
3
B & D Only
4
B Only