Which of the following statements is TRUE?

	1.	A company’s customers are more price sensitive if they have high profit margins
	2.	The threat that a new company will enter an industry sector is higher when customer switching costs are low
	3.	A company’s customers are more powerful if there is a large number of potential customers that the company can sell to
	4.	A substitute product is less of a threat when the customer’s switching costs are low