alleryWhich of the following is treated as an apparent exception to the law of diminishing marginal utility?
ADaily consumption of drinking water
BCollection of rare hobby items
CWearing of ordinary cotton clothing
DEating successive bars of chocolate
Answer & Solution
Correct answer: B. Collection of rare hobby items
1. In hobbies and rare collections, every addition can raise marginal utility rather than reduce it.
2. This makes such cases apparent exceptions to the law.
3. Ordinary water, chocolate and common clothing all show normal diminishing MU, so those options are wrong.
_Source: ICAI BoS CA Foundation Paper 4 Business Economics, Ch 2 Unit II "Theory of Consumer Behaviour", p.6_
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