Learning Contents:    Exceptions to the Law of Diminishing Marginal Utility The Law of diminishing marginal utility states that the additional satisfaction (MU) gained from the consumption of every unit keeps on diminishing. But there are some exceptions where this law is not applicable or when marginal utility increases as more and more units of a good are consumed. 1. Hobbies: Some people have hobbies like collecting coins, stamps, pieces of art, novels, etc. Their desire to collect never ends as they derive more and more utility from additional units gained from their hobby item. For instance, a level of satisfaction increases when a new variety of stamps or coins are received. However, the utility diminishes if the same variety of stamps or coins is gained every time. 2. Drunkards: People addicted to liquor have a tendency to gain more and more utility from the consumption of every additional unit of liquor. Their tendency to intake will increase with every peg of liquor.