In my book (Daniel V.Schroeder - An introduction to thermal physics) in page 267 they introduce the Fermi-Dirac distribution is given by
$$\bar{n}_{FD}=\frac{1}{e^{(\epsilon-\mu)/kT}+1}. \tag{1}$$
But a few pages later they claim that the Fermi-Dirac distribution becomes a step function and then proceed to define the Fermi energy as
$$\epsilon_F=\mu(T=0).$$
Questions:
1) How does $\bar{n}_{DF}$ become a stepfunction at $T=0$? It's not even possible to plug it in the distribution since then we have division by zero.
2) The expression for the chemical potential $\mu$ is given by
$$\mu=-kT\ln{\frac{Z_1}{N}},$$
where $N$ is the number of particles and $Z_1$ is the partition function for any single particle. So setting $T=0$ should just give $\epsilon_F=\mu=0$. But this is apparently not the case. Why?