The Law of DMU is criticized on the grounds illustrated below:
1) Deriving utility is a psychological experience, whenever we say a unit of X provides ten units of utility, this means that utility can be calculated precisely. In actuality, utility can’t be measured. For illustration, whenever a person sees a film and says it is very first-class, we can’t measure the utility he has derived from it. Though, we can compute utility indirectly by the cinema fare he is willing to disburse.
2) The Law depends on a single commodity consumption mode. That is, a consumer utilizes only one good at a time. This is an impractical supposition. In real life, a consumer utilizes more than one good at a time.
3) According to the Law, a consumer must consume consecutive units of similar good continuously. In actual life it is not so.
4) The Law supposes constancy of the marginal utility of money. It means that the marginal utility of money stays constant, even whenever money stock changes. In real life, the marginal utility derived from the consumption of a good can’t be measured accurately in monetary terms.
5) As utility itself is able of differing from person to person, the marginal utility is derived from the consumption of a good can’t be measured accurately.
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