To illustrate how polymorphism and dynamic binding can optimize performance, let's look at some examples of code snippets in Java. For instance, with polymorphism, you can create an array of Animal objects and assign them to different instances of Dog and Cat. Then, you can loop through the array and invoke the sound method on each object, without knowing its exact type. This means that the output will be the correct sound for each animal, thanks to polymorphism. Similarly, with dynamic binding, you can create a variable of type Shape and assign it to different instances of Circle, Square, and Triangle. You can then invoke the area method on the variable without knowing its exact type. This means that the output will be the appropriate area for each shape due to dynamic binding.