Which of the following scenarios best illustrates the concept of economies of scale leading to cost minimization while maximizing profits for a firm?

Economies of scale occur when a company can produce goods at a lower cost per unit as it increases production. This happens because fixed costs, like rent and salaries, are spread over more items, reducing the average cost. For example, if a bakery bakes 100 loaves of bread, it spends a certain amount on ingredients and utilities. But if it bakes 1,000 loaves, the cost per loaf decreases because the bakery still pays the same rent and staff. By producing more, the bakery can sell each loaf at a lower price while still making a profit, thus minimizing costs and maximizing profits.