Mark--- Your engine's rpm range is about the same as the old Ford Lehman 120, only the FL120's max governed rpm is 2500. And our idle rpm is more like 600 or so. If your JD engine can achieve its 2400 rpm at full throttle with the prop you have now, conventional wisdom says you have the right prop pitch and diameter. If it can't then you have the over-propped condition that Eric described. Over-propping is not necessarily bad--- Grand Banks did it for decades. Over-propping can give you a bit more cruise speed at a given rpm and as long as you don't run hard and lug the engine--- Eric's high gear in a car scenario--- it's a valid way to get more efficiency out of the boat.
While our boat no longer had its original three-bladed props when we bought it, the four-bladed props it had were set at the original props' pitch settings. Since the props were flour blades, this overpropped the boat even more. At full throttle the engines turned at about 2200 and 2300 rpm respectively. So we had the props completely reworked and pitched down an inch from the original prop specs.
If your engine cannot achieve 2400 rpm with the prop pitched as it is now, you might want to talk to a good propshop to determine if you wold be better off with the prop pitched down to the point where the engine will achieve 2400 rpm. If you can get 2400 rpm with the prop the way it is now, then I guess you're about where you should be unless you want to pitch down for a slower idle speed. This means you'll need to run at a somewhat higher rpm at cruise. But with the prop pitched down, the engine won't be working as hard at that higher cruise rpm as it does now at that rpm.
Everything's a trade-off.