Final answer:
Competing firms collaborate to create lobbying associations when they have common objectives that require influence on legislation or policy beneficial to their industry.
Step-by-step explanation:
Representatives of competing firms often cooperate to form lobbying associations due to shared interests that transcend their competitive market behavior. Competing firms may have a mutual interest in the creation of favorable legislation, regulation reform, or in influencing policy decisions that will benefit their industry as a whole. For example, competitors may lobby together for looser regulations, tax cuts, or other forms of government action that would benefit all firms in the industry. This collective action can be seen as a strategic move to enhance the business environment for a particular sector, even while the companies involved continue to compete in the marketplace.