Map of italy portofino for Layoffs are a rational response of a profit-maximizing firm facing higher wages particularly when total revenues have been depressed by a drop in demand. How resources are allocated and re-allocated in a market economy is determined largely by changes in profit margins precisely because most firms choose to pursue profit maximization as their primary goal. In countries like the United States and others that possess highly developed financial systems, profit maximization provides not only the mechanism by which most production decisions are made but also has a significant impact on firms’ abilities to raise financial capital. Stock prices reflect the present, discounted value of firms’ expected profits and hence determine how easy or difficult it will be for a company to raise cash by issuing securities. A firm that is expected to be extremely profitable in the future can expect the demand for its securities to be high and consequently can expect to raise large sums of money by issuing marketable securities. Higher profits mean more financial capital for firms. Economic growth, employment, and living standards are substantially improved as high levels of CAPITAL ACCUMULATION are made possible. Map of italy portofino 2016.