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it is the point at which the fundmental power equal to the IM3 power
Added after 4 minutes:
note this is usually a theoritical point as the output power will compress before reachng this point and hence the IP3 is found by intersecting the extention of the fund. and IM3 components "i.e. u linearize the system around some small signal operating point " ,usually it gives an indication about linearity where usually P1dB=IP3-10
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