My understanding of sizing heating/cooling units for best overall efficiency and comfort means they will be sized to run quite a bit of the time . . . it was designed for the duty cycles run near or at 100%.
If you oversize a unit by too much you get less run time but comfort levels do suffer.
This is correct. An AC needs to remove the humidity as it removes the heat. An AC that is oversized will cool the space down but it will not dehumidify very well. So it has to be sized not to cycle too much.
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