The Limitation of Size Principle is a concept in set theory that asserts there are constraints on the sizes of sets, particularly in relation to ordinal numbers and their construction. This principle is significant because it helps to avoid contradictions that arise when trying to consider 'the set of all ordinals,' which leads to paradoxes like the Burali-Forti Paradox, where an attempt to form a set larger than any ordinal number leads to inconsistencies in understanding ordinality and size.
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