Engineering Thermodynamics
Otto cycle efficiency is higher than Diesel cycle efficiency for the same compression ratio and heat input because in Otto cycle

Maximum temperature is higher
Combustion is at constant volume
Expansion and compression are isentropic
Heat rejection is lower

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Engineering Thermodynamics
According to First law of thermodynamics,

Total internal energy of a system during a process remains constant
Work-done by a system is equal to the heat transferred by the system
Total energy of a system remains constant
Internal energy, enthalpy and entropy during a process remain constant

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