Has absolutely nothing to do with the keyword typed in!!! Are these people really paying $10 / click???
First of all, it is impossible for you to know how much your competitor is paying per click. That information is not public, and can only be estimated. Second of all, you most likely have to pay $10 per click because you have a "Poor" Quality Score attached with a low CTR. Google automatically puts out the message that you must pay $10 per click in ANY niche; and even if there are ZERO competitors. Now, the solution to this is working on increasing your CTR; and also working on your landing page.