LAME is an open source audio encoder. The encoder is not a graphical application that you can double-click, but a command-line tool, usable from the Terminal application (which lives in the Utilities folder inside the Applications folder) or other graphical applications.
You can use it directly from the Terminal, by invoking the lame tool. See its man page for options and syntax. It can also be used by other applications. There are normal, double-clickable applications that use LAME to convert audio files to mp3.
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