Why, exactly, are large-displacement engines more efficient?

Yes, you’ve confused ‘specific output’ (hp/cc) with ‘efficiency’ (power x time per unit of fuel). Motorcycles can be very inefficient when tuned for high hp, just like a race car engine can be. You’ll want to go to wiki and read about efficiency.

I don’t get the comments on big engines getting better mpgs. At least in cars, with a given technology smaller engines always do better.