If you want to enclose a certain area, the shape that does it with the shortest perimeter is a circle.
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Bigger than what ? Smaller than what ? If you have a certain perimeter and you want to cram the most area inside it, or if you have a certain area and you want to enclose it in the shortest perimeter, then you must make the perimeter circular. If you have only a limited number of fence posts and a circular perimeter isn't practical, then you make the perimeter square.
Perimeter is the outside of a shape
Perimeter is the outside. The area is the inside of a shape.
The perimeter of a shape is the distance around the outside. For a shape with straight sides, the perimeter is the sum of the length of the sides. The perimeter of a circle is called the circumference, and is calculated by multiplying the diameter by pi.
The formula for the perimeter of a shape depends on the shape. It is the sum of the lengths of all the sides that enclose the shape.