Critical Levels


Critical Levels

Values of control parameters where the nature of a nonlinear dynamic system changes. The system can bifurcate, or make the transition from stable to turbulent behavior. An example is the straw that breaks the camel's back.

Critical Level

1. A variable that has reached a sufficiently high or low value as to change the nature of what is discussed. For example, if the revenue of a small business reaches a certain level, it may need to hire additional employees, which could subject the business to more regulation, and this may result in the small business becoming a medium-sized business or even a large corporation. In this case, the revenue necessary to make this happen is called the critical level of revenue.

2. The time when a company's operations have become sufficiently profitable that it can sustain itself without further capital infusions or other sources of outside funding. Critical level is the goal of all start-ups, many of which may remain in the development stage for years or never leave it.

In both cases, the critical level is also called critical mass.