The dictator of a certain country requires that companies planning to open or expand must pay a large fee to file an application one year prior to plans to build new factories or expand existing ones.Other things the same,in the long run this requirement would

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By requiring a large fee to file an application, the dictator is imposing an additional cost on companies that plan to open or expand their factories. This will reduce the incentive for companies to invest in the country, since they will have to pay more to do so. Over the long run, this will lead to lower levels of investment, lower levels of capital accumulation, lower levels of productivity, and lower levels of real GDP per person.

The Dictator of a Certain Country Requires That Companies Planning