Pay Per Click Bid Price Oppose to Actual Charge

[PaintingDenver]

I think I know the answer, but wanted to check in~

Adword Greetings!

I have an adwords account, using it quite a bit over the past, however taking quite a bit of management, I elected to hire a company to do it for me.

This company vowed they would not mark up CPC, making a penny more than what Google charges, while I've contracted with them to pay a management fee of an agreed amount. Knowing the Bid price is what gets the ad placed at a certain height on the right sponsored side, as other bids competing for that particular keyword, I have a question, in a cynical study all other factors being the same. ie, Quality Score, Broad, Exact, Phrase.

Dose Google charge the Bid price to the company ~Or~ Does Google charge say a penny more than what others are bidding to have that company on top of page, if clicked? Another way of asking, not wanting to confuse myself. lol

If a marketing company set Bid $ at a $1000.00 for a particular keyword, knowing full well the average price is say $3.00, and someone clicks on ad, would Google charge the company $1000.00, or $3.01, giving all other factors were the same, including QS.

I think I know the answer, but want to hear and read it from someone else in the Know.

Thank you,
Cal