In sinusoidal circuits, only the resistive component contributes to average power, while the load impedance must be the conjugate of the Thevenin resistance for maximum average power transfer. When impedances are not conjugate matched, some power is not utilized, leading to lower dissipation in the resistance. The average power is maximized by minimizing the total reactance, which involves setting the imaginary parts of the load and source impedances to be equal and opposite. This ensures that the load resistance matches the source resistance, adhering to the maximum power theorem. Proper impedance matching is crucial for efficient power transfer in these circuits.