Use the Disk Utility app in the Applications->Utilities folder.
Insert the master CD, run Disk Utility (DU). In DU’s window, on the left, you’ll see a list of all the disks on the computer, including hard drives and CDs or DVDs.
Select the “2nd level” icon, “25.4 MB Untitled 0” in this case. Then, click on the “New Image” icon in the toolbar. This will bring out a sheet asking for Save As etc.
Give it some name, “fave_app” in this case. And make sure the “Image Format” is “DVD/CD master”. Hit Save. This will create a disk image on the desktop named “fave_app.cdr”.
This cdr disk image file will also appear in Disk Utility. To burn a new disk using that disk image, just select it, then click the “Burn” icon in the toolbar. It'll ask you to insert a new disk.
Note that I don’t know if this will overcome copy protection if there happens to be any on the disk.