According to some Calculus textbooks,  
  is an ``indeterminate
    form''. When evaluating a limit of the form  
 , then you need
    to know that limits of that form are called ``indeterminate forms'',
    and that you need to use a special technique such as L'Hopital's
    rule to evaluate them. Otherwise,  
  seems to be the most
    useful choice for  
 . This convention allows us to extend
    definitions in different areas of mathematics that otherwise would
    require treating 0 as a special case. Notice that  
  is a
    discontinuity of the function  
 . More importantly, keep
    in mind that the value of a function and its limit need not be the
    same thing, and functions need not be continous, if that serves
    a purpose (see Dirac's delta).
    This means that depending on the context where  
  occurs, you
    might wish to substitute it with 1, indeterminate or
    undefined/nonexistent.
    Some people feel that giving a value to a function with an
    essential discontinuity at a point, such as  
  at (0,0), is
    an inelegant patch and should not be done. Others point out
    correctly that in mathematics, usefulness and consistency are
    very important, and that under these parameters  
  is
    the natural choice.
    The following is a list of reasons why  
  should be 1.
    Rotando & Korn show that if f and g are real functions that vanish
    at the origin and are analytic at 0 (infinitely differentiable is
    not sufficient), then  
  approaches 1 as x approaches 0 from
    the right.
From Concrete Mathematics p.162 (R. Graham, D. Knuth, O. Patashnik):
Some textbooks leave the quantityPublished by Addison-Wesley, 2nd printing Dec, 1988.undefined, because the functions
and
have different limiting values when x decreases to 0. But this is a mistake. We must define
for all x, if the binomial theorem is to be valid when x=0, y=0, and/or x=-y. The theorem is too important to be arbitrarily restricted! By contrast, the function
is quite unimportant.
    As a rule of thumb, one can say that  
 , but  
  is
    undefined, meaning that when approaching from a different
    direction there is no clearly predetermined value to assign to
     
 ; but Kahan has argued that  
  should be 1,
    because if  
  as x approaches some
    limit, and f(x) and g(x) are analytic functions, then
     
 .
    The discussion on  
  is very old, Euler argues for  
 
    since  
  for  
 . The controversy raged throughout the
    nineteenth century, but was mainly conducted in the pages of the
    lesser journals: Grunert's Archiv and Schlomilch's Zeitschrift für 
    Mathematik und Physik. Consensus has recently been built around 
    setting the value of  
 .
    On a discussion of the use of the function  
  by an Italian
    mathematician named Guglielmo Libri.
[T]he paper [33] did produce several ripples in mathematical waters when it originally appeared, because it stirred up a controversy about whetheris defined. Most mathematicians agreed that
, but Cauchy [5, page 70] had listed
together with other expressions like 0/0 and
in a table of undefined forms. Libri's justification for the equation
was far from convincing, and a commentator who signed his name simply ``S'' rose to the attack [45]. August Möbius [36] defended Libri, by presenting his former professor's reason for believing that
(basically a proof that
). Möbius also went further and presented a supposed proof that
whenever
. Of course ``S'' then asked [3] whether Möbius knew about functions such as
and g(x) = x. (And paper [36] was quietly omitted from the historical record when the collected words of Möbius were ultimately published.) The debate stopped there, apparently with the conclusion that
should be undefined.
But no, no, ten thousand times no! Anybody who wants the binomial theorem
to hold for at least one nonnegative integer n must believe that
, for we can plug in x = 0 and y = 1 to get 1 on the left and
on the right.
The number of mappings from the empty set to the empty set is
. It has to be 1.
On the other hand, Cauchy had good reason to consider
as an undefined limiting form, in the sense that the limiting value of
is not known a priori when f(x) and g(x) approach 0 independently. In this much stronger sense, the value of
is less defined than, say, the value of 0+0. Both Cauchy and Libri were right, but Libri and his defenders did not understand why truth was on their side.
[3] Anonymous and S
Bemerkungen zu den Aufsatze überschrieben, `Beweis der Gleichung
, nach J. F. Pfaff', im zweiten Hefte dieses Bandes, S. 134, Journal für die reine und angewandte Mathematik, 12 (1834), 292-294.
[5]
uvres Complètes. Augustin-Louis Cauchy. Cours d'Analyse de l'Ecole Royale Polytechnique (1821). Series 2, volume 3.
[33] Guillaume Libri. Mémoire sur les fonctions discontinues, Journal für die reine und angewandte Mathematik, 10 (1833), 303-316.
[36] A. F. Möbius. Beweis der Gleichung
, nach J. F. Pfaff. Journal für die reine und angewandte Mathematik,
12 (1834), 134-136.
[45] S
Sur la valeur de
. Journal für die reine und angewandte Mathematik 11, (1834), 272-273.
References
Knuth. Two notes on notation. (AMM 99 no. 5 (May 1992), 403-422).
    H. E. Vaughan. The expression ' 
 '. Mathematics
Teacher 63 (1970), pp.111-112.
    Kahan, W. Branch Cuts for Complex Elementary Functions
                 or Much Ado about Nothing's Sign Bit, The State of the Art in
                 Numerical Analysis, editors A. Iserles and M. J. D. Powell, Clarendon
                 Press, Oxford, pp. 165-212.  \
Louis M. Rotando and Henry Korn.The Indeterminate Form  
 .
    Mathematics Magazine,Vol. 50, No. 1 (January 1977), pp. 41-42.
L. J. Paige,. A note on indeterminate forms. American Mathematical Monthly, 61 (1954), 189-190; reprinted in the Mathematical Association of America's 1969 volume, Selected Papers on Calculus, pp. 210-211.
Baxley & Hayashi. A note on indeterminate forms. American Mathematical Monthly, 85 (1978), pp. 484-486.
Crimes and Misdemeanors in the Computer Algebra Trade. Notices of the American Mathematical Society, September 1991, volume 38, number 7, pp.778-785