It sounds like you may be using broad keywords rather than phrase or exact matches. If you change that setting you should get less impressions but more clicks so a higher click through rate - and your ad will appear higher up for less money if you have a higher click through rate.
In theory. I spend $1500 a month on Adwords. If I go broad match my CPC is low. If I set everything to exact or phrase match my traffic goes way down and magically my CPC doubles, even on QS 10 keywords.
I try giving Google what it wants (exact matches for searches) and suffer this way for a week or two before just abandoning "conventional wisdom" and setting everything back to Broad Match.
It's very frustrating.