Volume refers to the amount of space that an object occupies. In biology, it's important because it affects the capacity of cells and their ability to function.
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Cell Capacity: This is similar to how much your backpack can hold; it's what a cell can contain within its volume.
Cytoplasm: This is like all the stuff inside your backpack; it's everything within a cell's membrane but outside its nucleus.
Mitochondria: These are like little power plants inside cells (like batteries in your devices); they use up some of that cellular volume to generate energy for cell functions.