Which of the following best illustrates the concept of specialization?

The choice illustrating the concept of specialization is a farm that only grows one type of crop. Specialization refers to focusing resources on a specific task or area of expertise to improve efficiency and productivity. In this case, by dedicating all its efforts to growing a single crop, the farm can optimize its processes, enhance yield, and potentially achieve better quality than if it attempted to cultivate multiple types of crops.

This concentrated approach allows the farm to develop in-depth knowledge and skills related to that specific crop, improving its competitiveness in the market. In contrast, the other options involve diversification, where a factory, retail store, or service provider spreads its efforts across various products or services, which may dilute specialization and reduce the efficiency gains that come from focusing on a single area.