The legal system imposes large financial penalties on firms caught violating Environmental Protection Agency guidelines.The EPA's standards program is thus an example of a

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The fact that the legal system imposes large financial penalties on firms caught violating EPA guidelines suggests that the EPA's approach is a direct-control system enforced through the courts. The options of market-based approaches, emissions taxes, and emissions permits involve different mechanisms for incentivizing or regulating pollution reduction, which are not reflected in the given information.

The Legal System Imposes Large Financial Penalties on Firms Caught