Final answer:
Competing corporations join together in associations to harness strength in numbers for lobbying, addressing common industry issues, and benefiting from favorable government policies, but they must avoid illegal activities like price-fixing and market division.
Step-by-step explanation:
Several competing corporations join together in an association for a variety of reasons. They may do this because there is often strength in numbers, and they can lobby more effectively for common interests that may affect an entire industry, such as seeking tax breaks or eased regulations. Additionally, all members can potentially benefit from governmental policies that support their industry. However, it's important to note that in many places like the European Union and the United States, it is illegal for these firms to divide markets and set prices collaboratively, as it would essentially create a monopoly, which is not allowed under antitrust laws. Companies within the same trade or industry form trade associations because they have similar concerns and can collectively address them. For example, the American Beverage Association includes competitors like Coca-Cola and Red Bull, who come together to advocate for concerns related to the manufacturing, bottling, and distribution of beverages, among other things. Yet, that doesn't prevent these companies from also seeking individual representation to advocate for their distinct business interests.