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How did the M16A2 differ from the earlier M16A1?

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The M16A2 introduced a significant change to the fire-control system of the M16A1. While the M16A1 featured both semiautomatic and fully automatic firing options, the M16A2—adopted by the U.S. military in the early 1980s—replaced the fully automatic capability with a three-round-burst setting.1

This modification was implemented with the specific intent of increasing the accuracy of the assault rifle and reducing the overall consumption of ammunition during combat.1