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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In 2011, people playing Foldit, an online puzzle game about protein folding, resolved the structure of an enzyme that causes an Aids-like disease in monkeys. Researchers had been working on the problem for 13 years. The gamers solved it in three weeks.