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The best way to understand this is by observing the following pattern.

x^4=(x)(x)(x)(x)

Now divide both sides by x to get

x^3=(x)(x)(x)

Divide both sides by x again to get

x^2=(x)(x)

Again

x^1=(x)

Again

x^0=1

Hopefully seeing this pattern will at least help you understand why x^0=1. However the real reason is that mathematicians have agreed that this is the best way.

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Q: Why does x0 equal 1?
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