As a matter of fact, Google AdWords take much more than that when deciding the cost per click, becides the obvious competition for the keyword/place, such as:
- use of keywords in the ad title
- use of keywords in the description
- keywords in the target URL
- the quality of a landing page (the amount of content there and presence of the same keywords there: in title tags, meta tags, main content area, anchor text to the page)
Since recently, Google also takes the site reputation into account, however, judging by the outcry this change prompted on forums, the Google has yet to tweak the Google AdWords landing page algorithm.
At any rate, you can check this article on improving your AdWords campaign quality
If you were referring to getting revenue from AdSense, the only way to increase the revenue is to target the most expensive keywords, get the most traffic and place the ads in the most visible areas. There also can be a debate whether to provide extreme quality landing pages for people to stay longer on your site or low-medium quality for people to click on the ads.
You can determine the costs of clicks (both for your AdWords campaign and for AdSense) at the Google Keyword Suggestion tool
Feel free to ask any more questions.