The physics behind engine power and fuel economy are well understood.
At a basic level if you want more power you need to burn more gas and air. You need to make the engine bigger, and spin faster. That and make it more efficient, less friction, less weight, etc.
The problem is that more powerful engines aren’t nearly as fuel efficient.
Since the average person doesn’t need 800hp to drive to the store it makes a lot more sense to build cars in the 100-200 hp range where you get enough power to do what you need to do while saving gas. The engines are also cheaper, lighter, and last longer.
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