How Does Target Cost-Per-Acquisition (CPA) Bidding Determine The Optimal Cost-Per-Click (CPC) Bid?

• It uses conversions history to set higher bids when a conversion is more likely
• It sets CPC bids as one-tenth of the current CPA bid setting
• It adjusts CPC bids based on existing bid adjustments
• It bids a static CPC value based on the current maximum CPC settings

The following is the Correct answer:

• It uses conversations history to set higher bids when a conversion is more likely

What is Target Cost-Per-acquisition (CPA) A bidding

Target CPA bidding determines the optimal CPC bid by used to generate more conversions, and it is a google smart bidding strategy that sets bids to help as more conversion as possible at target-per-action(CPA) you set. It includes an intelligent machine learning process to automatically set or optimize efforts. It is advantageous to generate more sales by targeting the bidding system because it creates quality actions. Target CPA bidding automatically finds an optimal bid for your ad each time it's eligible to appear.
CPA bidding is charging biding cost-based CPA cost to the advertiser, it is because it has the competition between different advertisers or Adwords users market.

if we say in simple words it uses the history of earlier conversations to fix or set higher bids when any conversion is more likely.