Why does x^0 equal 1?

Since basic school we know, that x^0=1, but only recently when our kids began to study mathematics we asked ourselves "why?".

I came up with this explanation:

x^0=x^{n-n}=x^n \times x^{-n}=\frac {x^n} {x^n}=1

Also a good test for the Easy LaTeX WordPress plug-in.

And here's jsxgraph plug-in test:
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