Final answer:
Scarcity plays a role in a manufacturer's decision to produce MP3 files instead of CDs because producing CDs requires physical materials that may be scarce and costly, while MP3 files can be easily reproduced and distributed digitally.
Step-by-step explanation:
Scarcity plays a significant role in a manufacturer's decision to produce MP3 files instead of CDs. In economics, scarcity refers to the limited availability of resources in relation to unlimited wants. In the case of music production, producing CDs require physical materials, such as plastic, which may be scarce and costly. On the other hand, MP3 files can be easily reproduced and distributed digitally, without the need for physical materials, making it a more cost-effective option for manufacturers.