Lot size refers to the quantity of items or units included in a single order or transaction. In real estate, it can also describe the size of a parcel of land available for sale or development. Understanding lot size is crucial for buyers and sellers, as it impacts pricing, investment potential, and usage options. In manufacturing and inventory management, lot size determines how many products are produced or ordered at one time. A larger lot size can lead to economies of scale, reducing costs per unit, while a smaller lot size may allow for more flexibility and responsiveness to market demand.