There's a bit more to that equation than that - but the basics of your argument are correct. The issue with a smaller engine like the Nissan 2.3L sewing machine with 16 hair dryers and a supercharger on them is that it's all producing the power at revs and no torque. So if you alter the drive characteristics by say loading a heavy boat+trailer on the back is the engine can't easily get to the required RPM to produce the required power. End result is a shitload of black smoke out the exhaust and possibly a limp mode DTC for fuel injector operation and oxygen sensor readings out of spec. Ont he other hand, a bigger capacity engine is less economical empty but at heavy load does not struggle so much and uses the fuel more efficiently.
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