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ICENTIVE is any factor financial or nonfinancial that provides a motive for a particular course of action, or count as a reason for preffering one choice to the alternative. Incentives are given to the workers for motivating them for doing the work more efficiently or effectively.

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Q: Comment on the meaning of incentive regulation and explain the determinants of the incentive power of a regulatory regime. What are the implications of the incentive power on the different types of ef?
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