Ans. No, I do not agree with this statement.
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.
i. Hobbies: - it is believed that in the case of certain
hobbies such 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.
ii. 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.
iii. 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.
iv. Music and poetry: -It is believed that more poetry and music give
greater satisfaction.
