A resistive dummy load capable of handling 2.5 watts can be achieved using smaller resistors, but their power ratings are typically limited to lower wattages, such as 1/10W to 1/4W for common sizes. To effectively dissipate 2.5W in a compact form, options include using multiple smaller resistors in parallel to distribute heat more efficiently or employing thermal management techniques like heat sinks. The discussion highlights the importance of understanding the specific application, including whether the load will be continuous or pulsed, as this affects the required power rating. Additionally, improving thermal conductivity or airflow can help manage heat dissipation in smaller resistors. Ultimately, achieving a smaller 2.5W resistor involves balancing size, thermal management, and application requirements.