On a slight tangent, the book also says that for any given keyword phrase, if there's less than 8 ads on the 1st page of results, then that means that you can definitely get your ad on the 1st page for 5 cents - is that true? It hasn't played out in practice for me, anyways. I've bid on terms where it was a minimum of $1.00 to even be active for search and there was only 1 ad displaced when I did a search on that exact phrase.
In it it says that you can now (after 8/19/05) potentially get a Adwords click for less than 5 cents.
This is true. After that date, the offical minimum CPC was reduced from a nickel to a penny.
...for any given keyword phrase, if there's less than 8 ads on the 1st page of results, then that means that you can definitely get your ad on the 1st page for 5 cents...
This is false. Minimum bids still apply, regardless of the number of advertisers.