Small Signal Approximation
Nonlinear elements such as transistors tend to behave linearly when small AC signals are applied to them. So in analysing many circuits where the signal levels are small, for example those in TV and radio receivers, nonlinear elements can be replaced with a linear small-signal model, allowing linear analysis techniques to be used.
Conversely, many linear circuit elements show nonlinearity as the signal level is increased. If nothing else, the power supply voltage to the circuit usually puts a limit on the magnitude of voltage output from a circuit. Above that limit, the output ceases to scale in magnitude with the input, failing the definition of linearity.
Read more about this topic: Linear Circuit
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