Both Sponsored Product Ads and Sponsored Brand Ads are bought by auction-based Cost-Per-Click(CPC) inventory-buying model. CPC is the maximum amount you are willing to pay for a click on your ad. However, you are charged slightly higher than the second highest bid for a particular keyword.
This question is a part of the Amazon Sponsored Ads Foundations Certification Assessment. You can find answers to all the questions asked in this exam in our Amazon Sponsored Ads Foundations Certification Assessment Answers page.