Google sets a minimum bid for every keyword in all B2C & B2B industries.
They'll charge what they think is fair market value for your keywords regardless of how many advertisers are bidding on it; translation, they won't sell you a click for 10 cents when they know it's worth 50 cents to you. Proof: I am the only one who bids on my company name (which is trademarked) and pay 35 cents a click. Why $.35? Well I don't have Google conversion tracking turned on because I certainly do not want them know HOW profitable my company name clicks are to me, but they are not stupid. All the have to do is have access to a competitor company in the same business vertical who has conversion tracking on to assign a value for what I should minimally be paying.