If Country A can produce 10 units of cloth or 5 units of wine, while Country B can produce 6 units of cloth or 3 units of wine, which country has a comparative advantage in producing wine?

To determine which country has a comparative advantage in producing wine, we first look at how much of each product both countries can make. Country A can produce 5 units of wine or 10 units of cloth, meaning it gives up 2 units of cloth for every unit of wine. Country B can produce 3 units of wine or 6 units of cloth, so it gives up 2 units of cloth for each unit of wine as well. Since both countries give up the same amount of cloth to produce wine, neither has a clear comparative advantage based on these numbers alone. However, if we consider the overall production capabilities, Country A can produce more wine overall, but both countries are equally efficient in terms of opportunity cost for wine production.