Explanation why IEnumerable is more efficient than a List

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I keep hearing that in .net 3.5 you should use IEnumerable over a List, but I can’t find any reference materials or articles that explain why it’s so much more proficient. Does anyone know of any content that explains this?

The purpose of asking this question is to get a better understanding of what IEnumerable is doing under the hood. If you can provide me with any links I will do the research and post an answer.

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