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As of Red Dragon, there are now four main types of rifle squads.
Line infantry: these are the backbone of any army. Cheap and numerous, they generally wield an assault rifle along with a cheap LAW and a machine gun.
Shock infantry: these are more expensive than line infantry, due to their improved weapons and training. Their rifles both fire faster and are more accurate than those of line infantry, they often wield more powerful LAWS and some have CQC machine guns, making them much stronger in urban warfare. Some shock infantry units come with 15 men per squad, rather than the usual 10. This gives them more ammunition and makes them sturdier, at the cost of being slightly more expensive.
Light infantry: similar to line infantry, except they trade their LAWs for ATGMs. These ATGMs are usually not as good as those used by dedicated ATGM teams, but are still superior to standard LAWs.
Reserve infantry: the weakest type, frequently armed with inaccurate and slow-firing battle rifles and weak LAWs. They are meant to plug gaps in lines with their cheap price and high numbers. Always deploy Reserve Infantry in blocks of 4, to maximise their chance of killing anything.