Law of Diminishing Margina Does the fact that people go to watch the same movie again and again contradict the Law of Diminishing Marginal Utility? Explain by giving reasons.
No: 1) Most people only go once. 2) The consumer surplus of the repeat customer might be declining but still positive.
Yes: People might actually enjoy the movie more and more each time they see it because having seen it changes their preferences as they learn. (For example, people often enjoy skiing if they ski a lot because they learn to be better skiers.)
