The video tutorial explains how to combine lists and generators using the 'chain' function from Python's itertools module. It highlights the advantages of using 'chain' over traditional list addition, such as avoiding unnecessary copies and improving efficiency. The tutorial provides practical examples to demonstrate how 'chain' can seamlessly iterate over multiple iterables, including lists and generators.

How can you use the chain function with both generators and lists?

Describe the behavior of the chain function when it reaches the end of one list.