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This lecture covers the principles of thermodynamics, focusing on simple systems and the evolution of entropy. It discusses internal production of entropy, reversible processes, thermodynamic temperature, and powers in simple systems. The instructor explains the concept of chemical potential and the balance equations for entropy. The lecture also delves into extensive state variables, homogeneous systems, and the description of system states using entropy. Various scenarios of open and closed systems are analyzed, emphasizing the importance of entropy transfer and no chemical reactions. The lecture concludes with a detailed explanation of the equation of state, adiabatic processes, and the impact of external work on system entropy.