Use Figure 17.2 to explain why cost minimization through a tangency between an isoquant and a budget line does not apply in cases where D and M are either perfect complements or perfect substitutes. Describe the cost-minimization process and the effects of changes in the relative prices of D and M in these special cases.

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Medical inputs M M Isoquant 3 E 0 D Drugs Isoquant 1 H F G Isoquant 2 D Figure 17.1 Substitution between Drugs and Other Medical Inputs