1)

In general INDUSTRY can be defined as production of goods and services from a particular segment in the economy. Tourism means to roam or explore the territory within the country and also outside the country for a reason or without any reason.

Tourism is considered as a industry in USA and others countries because of the following reasons which is mentioned in points.

* Buying and selling of products. Products includes holiday packages, hotel rents, traveling etc which ultimately leads to more production as the tourism increase and it increases GDP of the country.

*Foreigners visit USA and also other country for heritage tourism, business, culture tourism and adventure.It increases the GDP as the consumption increases in these sectors due to tourism and the country in which tourist visit charge more from foreigners than the native citizens for visiting certain places.

* A large number of people of USA engaged in tourism sector and generating employment from this sector as the profit margin is significantly somewhat high than many other sectors.

*Tourism promotes national integration which leads to further relation generation of the country.

From the above mentioned points it can be concluded that why tourism is considered as industry.

2)

(d) average fixed cost would increase

The increase in fixed costs will lead the average fixed cost to increase per unit of output. For example, if TFC = $500 and output was 10 units, AFC = $50, but now TFC = $4000, so AFC becomes $400.

Increase in fixed costs does not change the variable costs or marginal costs. Marginal costs change when there is an increase or decrease in the variable costs.