3.6 An auto manufacturer in India is considering moving its production to a plant in Vietnam. Its estimated production function is q = 2L0.5K0.5. The factor prices in India are w = 300 and r = 1,200. In Vietnam, the wage is 20% less, but the firm faces the same cost of capital: w* = 240 and r* = r = 1,200.

What are L and K, and what is the cost of producing q = 20 units in both countries?