To minimize the perimeter of a rectangle formed by 24 unit squares, the perimeter function is defined as P(x,y) = 2(x+y), with the area constraint A = xy. The goal is to express the perimeter in terms of one variable by solving the area constraint for either width (x) or height (y). This can be approached using calculus techniques, such as basic minimization methods or Lagrange multipliers. The discussion emphasizes the importance of understanding these mathematical concepts to find the optimal dimensions for the rectangle. The smallest perimeter will result from the most efficient arrangement of the squares.