Is this how bidding works?

Trying to understand the "penny more" system from Google.

Would this be a decent outline?

Where did I go wrong?

Let's say Website A has set a bid of $10.00 per click.

Website B is bidding $3.00 per click.

Website A would be shown first, and each click will cost them $3.01.

Now, let's say Website C comes along bidding $6.00 per click.

Website A would be first, paying $6.01 per click.

Website B would be second, paying $6.00 per click.

Website C would still be third - paying $3.00 per...

Is this how bidding works?

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