To say that a perfectly competitive market is in short-run equilibrium is to say that

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In a perfectly competitive market, firms cannot earn economic profits in the long run due to free entry and exit of firms. Therefore, in short-run equilibrium, firms may earn economic profits or losses, but eventually, these will be competed away in the long run. The market is in short-run equilibrium when the market price is such that the quantity demanded by consumers equals the quantity supplied by firms. This means that no consumer wishes to buy any more or any fewer units at the market price, indicating short-run equilibrium. Therefore, choice C is correct. Choices A, B, D, and E are incorrect as they do not necessarily hold in short-run equilibrium in a perfectly competitive market.

To Say That a Perfectly Competitive Market Is in Short-Run