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This lecture covers the concept of Merge Sort, a recursive sorting algorithm that significantly outperforms Bubble Sort. It explains how Merge Sort iteratively splits a list into two sublists until each sublist has one element, then merges them in a sorted manner. The lecture also illustrates the process of merging two sorted lists and provides the algorithm for merging them. It delves into the complexity analysis of Merge Sort, showing that its complexity is linearithmic. Overall, the lecture emphasizes the efficiency and effectiveness of Merge Sort in sorting large datasets.