Does damage reduce a unit's might, and what happens when units with damage on them fight each other?

Ruling: Damage does not reduce might. The damage a unit deals in combat equals its might, regardless of how much damage is already on that unit.

Sequence:

• Firestorm deals 3 damage to units (not reducing their might)
• Units enter combat with their full might values
• Each unit deals damage equal to its might
• Units die if total damage on them equals or exceeds their health

Nuances:

• Damage dealt by spells before combat remains on units but doesn't affect their combat damage output
• In the specific scenario: 9 might and 6 might units (with +1 from battlefield) fight 8 might and 5 might units (7+1 and 4+1, each with 3 damage from Firestorm already on them), resulting in all units dying