"CPC" vs. "Suggested Bid"

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What's the difference between the "CPC" in AdWords and the "Suggested Bid" in the Contextual Targeting Tool(Google)? My thoughts are:

Cost Per Click= The avg. cost for a click from that kw
Suggested Bid= How would it be any different?

Obviously the suggested bid is usually about half of the CPC. If someone could clear this up that would be awesome.
#cpc #suggested bid

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