Just wondering what is to stop me from using 200+ keywords on my campaigns? I've used google adwords keyword tool, and I can always find a TON of 3 word strings that get 1000+ monthly searches and have zero competition. Am I correct in understanding that if I tell google to display my ads for 200 phrases, each with absolutely no competition and each with 1000 monthly searches, that I will get 200,000 monthly impressions and pay only $.01 per click?
No. You might get them for a $.01 a click if all the keywords are relevant to your landing page, and get a good click through rate.
Even if you are the only person in the world who is running an ad for the keyword, 'bluzefeltivsishness' then you still may not pay the minimum. Is your landing page optimised for that keyword? Do you have a great quality score? If your site has nothing to do with the traffic you keywords you are bidding for, then you're not gonna get it dirt cheap.