A City Guide To Dhaka for D. UNIVERSITY OF WISCONSIN, OSHKOSH 936 Zurich Financial Services absolute advantage: when better natural endowments or production-related experience equip one nation with the ability to produce more of a good than another nation, even though both nations have equal quantities of resources. accounting profit: the difference between a firm’s total revenues and total costs, where total costs are measured as the firm’s actual (operating) expenditures. ad valorem tax: a tax levied on the sale of a good, where the tax on each unit sold is determined by the value or price of that unit (e.g., a sales tax). allocative efficiency: a condition that describes the efficiency associated with how markets allocate goods and services or resources. A City Guide To Dhaka 2016.