A Carnot Engine is a theoretical heat engine that operates on the reversible cycle proposed by Sadi Carnot in 1824. It is designed to demonstrate the maximum possible efficiency that any heat engine can achieve when converting heat into work. The engine operates between two heat reservoirs: a hot reservoir that provides heat and a cold reservoir that absorbs waste heat. The efficiency of a Carnot Engine depends on the temperatures of the two reservoirs. It is calculated using the formula: efficiency = 1 - (T_c / T_h), where T_c is the absolute temperature of the cold reservoir and T_h is the absolute temperature of the hot reservoir. This concept helps in understanding the limits of real-world engines.