Java Joe sells 200 cups of coffee each day in a perfectly competitive market at the market price of $2.00 per cup.If Java Joe independently decreased its price per cup to $1.50,

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In a perfectly competitive market, firms are price takers, meaning they cannot influence the market price. If Java Joe decreases its price, it will still sell at the market price of $2.00, and lowering the price would decrease its revenue because it would still sell 200 cups but at a lower price, reducing total revenue from $400 to $300.

Java Joe Sells 200 Cups of Coffee Each Day in a Perfectly