1. According to the Coase Theorem:

1. It is virtually impossible for markets to achieve equilibrium without some sort of government involvement when negative externalities occur.
2. If transactions costs are low enough, common property can be converted to private property and markets can be created without government.
3. Say's Law, when aided by subsidies, can reduce pollution, excessive noise and other common property problems.
4. The invisible hand only works when there is symmetrical information and high transaction costs.
5. C and D only