We are given the recurrence relation \( x_n = 0.5x_{n-1} + 1 \) with the initial condition \( x_0 = 0 \). We need to find \( \lim_{n \to \infty} x_n \).
Step 1: Find the steady state solution.
Assume that as \( n \to \infty \), the sequence \( x_n \) approaches a constant value \( L \). Then, the recurrence becomes:
\[
L = 0.5L + 1
\]
Solving for \( L \):
\[
L - 0.5L = 1 $\Rightarrow$ 0.5L = 1 $\Rightarrow$ L = 2
\]
Step 2: Conclusion.
Therefore, \( \lim_{n \to \infty} x_n = 2 \), so the correct answer is option (C).
Final Answer: 2