Which of the following best illustrates the concept of specialization?

The concept of specialization refers to the process where an individual or entity focuses on a specific task, product, or field to increase efficiency and productivity. Specialization allows for a higher degree of skill and proficiency in a particular area, leading to better quality and lower costs.

In this context, the option showcasing a farm that only grows one type of crop exemplifies specialization effectively. By concentrating efforts on a single crop, the farm can develop expertise in growing, harvesting, and managing that crop, which would likely lead to greater yields and efficiency. This focused approach is a clear application of specialization, as it contrasts with engaging in multiple crops, which could dilute efforts and reduce overall productivity.

The other options represent various business models but do not illustrate the concept of specialization to the same degree. A factory producing a variety of products operates on diversification rather than focusing on one specific product line. A retail store selling multiple types of goods similarly engages in a broad range of products, which does not capitalize on the advantages of specialization. Lastly, a service provider offering a broad range of services tends to encompass multiple skill sets, which can hinder the mastery of any one service and dilute the benefits of specialization.