Limitation of diminishing marginal utility:
1. Income, taste and habit: When income, taste and habit is changed then at that time consumer can get more satisfaction from additional unit.
2. Time period: If there is very long time period interval between the consumption of different units of commodity at that time consumer may get more satisfaction from additional units.
3. Rare collection: In the case of rare collection this law is not applicable because if a person has hobby to collect rare items like old stamp, coin, painting, etc then he/she gets more satisfaction from the collection of more commodity.
4. Durable/ Individual goods: In the case of these goods this law is not applicable because consumer purchase this goo once at a time per personal use, as a result we can’t compare the marginal utility of different items.
5. Abnormal man: In the case of abnormal man this law is not applicable for example druggist, drunker, gambler, mad man, etc get more satisfaction from the consumption of last unit.
6. M.U of money remains constant: When one have high money its value is low but when there is less money its value is high but economics says that marginal utility of money remains constant so this law is not applicable.
7. Utility can’t be measured in numbers: Utility is to be measured in rank i.e. high, low, satisfaction but can’t be expressed in numbers.