The best way to see this is to use the addition and subtraction rules for multiplying and dividing exponents. Say you have x³/x² to do this you would use 3-2=1 and get x¹ which is just x. Now do the same but use x³/x³ we can see that this is the same numerator and denominator so we should get 1. Likewise if we use the rule from above we get 3-3=0. Thus x⁰=1.
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