Actual usage of Max Iter argument in the agent

[pradeepdev-1995]

Regarding Max Iter parameter,I can see the defnition like this in the docuementation.

Max Iter (Optional): The max_iter attribute allows users to define the maximum number of iterations an agent can perform for a single task, preventing infinite loops or excessively long executions. The default value is set to 25, providing a balance between thoroughness and efficiency.

What does this mean, the LLM we use inside the agent will calll 25 times(if max iter is default) and will use the best result? or anything else?
If llm call happen 25 times then will there huge token length and cost/latency involvement may happen?