Question

Explain how hobbies are not the real exceptions to the Law of DMU.

Answer 1

1. It is believed that in the case of particular hobbies, such as collecting stamps or rare coins, each additional stamp or coin provides more and more utility.
2. It is also believed that those who enjoy music gain more and more utility with each subsequent listening.
3. It is also believed that those who enjoy reading books gain more and more utility with each successive reading.
4. However, according to the Law of DMU's assumptions of homogeneity and continuity, if an individual is asked to collect the same type of stamp, listen to the same music, or read the same book continually, the marginal utility will diminish and the law will become applicable. As a result, hobbies are not true exceptions to the Law of DMU.