Shop's Promotional Offer Puzzle

There is a shop where written:
Buy 1 for $1
10 for $2
100 for $3
I needed 999 and still only paid $3. How could this be financially viable for the shop-keeper?




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Amazing Facts

No Solution

In 2007, a puzzle was released and $2 million prizes were offered for the first complete solution. The competition ended at noon on 31 December 2010, with no solution being found. Wiki