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When two 500 ohm 1 watt resistors are connected in parallel, they can dissipate a maximum total power of:
2 watts
Total resistance = 500/2 = 250 Ω. Max voltage is limited by the 1W rating of *each* resistor (P=V^2/R => V = sqrt(P*R) = sqrt(1*500)). Since voltage is the same across both in parallel, the total max power is the sum of individual max powers: 1W + 1W = 2W.
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