Explanation:

2nd option is incorrect i.e. Prices fixed being calculated on the basis of production cost
The economic regulations of Alauddin were the greatest administrative achievement of the Sultanate period. The prices remained steady and there was no change in them even after lack of rain or other causes. It was a unique and remarkable achievement. The success of these economic measures was largely due to the genius and personal attention of the sultan. These measures failed to survive his death because they operated against economic laws.