Question

Give Reason or explain the following:
Exception to the law of Diminishing Margnal Utility.

Answer 1

The exception of the law of DMU, where this law doesn’t apply:

• This law is valid only for uniform units of a commodity, which are same in shape, size, length, etc.
  
• The law applies only in cases when the consumer doesn’t change his taste and fashion of the commodity remains same, which hardly is the case.
  
• This law is not applicable for habitual goods of consumption like drugs, alcohol, etc.