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A performance exhaust is all about exhaust velocity. The faster the exhaust moves, the more efficiantly your engine breathes and makes power. And exhaust that is too large, like a 3" exhaust on a stockish Camaro will not see any gain, and may lose some power because the exhaust is not as pressurized.
Also on a side note, I have found 3" exhausts tend to have the highest chance of droning because for lack of a more technical term, the larger diameter pipe allows the exhaust sound frequencies to vibrate more.
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