Describe a scenario where it's more efficient to use local variables instead of instance variables in a servlet.

When the variable is used within a single servlet method.
When the variable needs to be accessed from different sessions.
When the variable needs to retain state across multiple requests.
When the variable should be shared among different servlet instances.

Local variables are more efficient when the variable's scope is limited to a single method and doesn't need to retain state between requests. This reduces the memory footprint and avoids unnecessary storage of data that doesn't persist beyond the method execution.

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