I'm currently reading through Aho's "Theory of parsing, translation and compiling" on my own and I got a bit confused about the closure operator on language $L$ with alphabet $\Sigma$ ($L^*$). The book defines it recursively as follows:
\begin{align*} 1)\ L^0&=\{e\}\\ 2)\ L^n&=LL^{n-1}\quad \text{for } n\ge1\\ 3)\ L^*&=\bigcup_{n\ge0}{L^n} \end{align*}
What sort of set does this operation define? It seemed to me that it defines something like "the set of all possible concatenations of strings of language $L$". There wasn't an actual example in the chapter, I can't figure it out.