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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A research team went to a village somewhere between the jungles of Africa. Luckily for them, they reached the day when quite an interesting custom was to be performed. The custom was performed once a year as they confirmed and was performed in order to collect the taxes from every male of the region.

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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