1. **Monopoly Graph:** - Start with a demand curve showing the market demand for McDonald's products. - Illustrate McDonald's marginal revenue curve, which lies below the demand curve due to the monopoly power. - Depict McDonald's marginal cost curve intersecting the marginal revenue curve to show the profit-maximizing quantity and price. - Shade the area representing McDonald's economic profits.

2. **Transition to a Competitive Market Graph:** - Adjust the original demand curve to represent a more competitive market, assuming a shift due to increased firms. - Show McDonald's new marginal revenue curve, which will now align more closely with the adjusted demand curve in a competitive market. - Display the new equilibrium quantity and price for McDonald's in this more competitive environment. - Highlight the change in economic profits, potentially showing a decrease or even a shift to normal profits.