It is believed that the Law
of DMU is not applicable in the following cases. But, strictly speaking. The
assumption of the law of DMU is not followed in these exceptions.
1. Hobbies: - it is believedthat in the case of certain
hobbiessuch as stamp collection, antique (historic) collection, etc. MU goes
on increasing with acquisition of additional units. But here the person does
not collect the same types of stamps, and therefore, the assumption of
homogeneity is not fulfilled.
2. Drunkards/Drug addicts: It is believed that every
dose of drug or liquor increases utility to the consumer. But in the case of
drunkard or drug addict, there is no rational behaviour is assumed.
3. Miser: -A miser’s greed increases with the increases in the
stock of money. But here miser displays an abnormal behaviour in hoarding
wealth. Therefore, the assumption of rational behaviour does not apply.
4. Music and poetry: -It is believed that more
poetry and music give greater satisfaction.
5. Reading: -Reading on more books provides more knowledge and in
turn, greater satisfaction. But the reader in search of knowledge does not read
the same book every now and then. Therefore, the assumption of homogeneity does
not apply.
6. Money: it is assumed that an
individual gets more satisfaction with more money and he wants to have more of
it. In the case of money, it is to be noted that money alone does not satisfy a
want directly. It only acts as purchasing power to purchases goods and
services. Goods purchased with money do have diminishing marginal utility.
