My well pump is cycling approximately every 5 seconds whenever a faucet is turned on. When the water is running you can actually feel the water surge every time the pump cycles. Is this caused by a defective pressure switch, low pressure in bladder tank, or a defective bladder? Do I need a new tank? Current switch is a 40/60 switch.

Sounds like your bladder may be ruptured. There are several ways to test a bladder pressure tank. (1) Open the snifter valve on top of the tank. If water comes out tank's faulty, **OR** (2) Take a metal object and start at the bottom of the tank and start tapping. You should hear a "clunk" until you get about half way up the tank. Then you should hear a "clank".
If you hear the same noise all the way up the tank then it's faulty.
In both cases if it fails (1) and(2) the tank must be replaced. Good luck, Tom