We have to make 100 widgets to satisfy demand, you can make 75 per hour, I can make 25 per hour.

I would say we both worked for an hour, so we both get half of the revenue. You want three quarters of the revenue because you made three quarters of the the widgets?

I of course understand that we would want something like that in practice as an incentive, otherwise I could be very lazy and make you do all the work. But let us forget about practical aspects, let us assume we both work to the best of our abilities, we can not find a more productive replacement for me, and so on. We are also not competing, you could of course offer your widgets cheaper than me and put me out of business.

Why do you think it would be more natural or better that we get compensate based on the amount of widgets each of us produced instead of what it cost each of us to produce them, an hour of work?

Because people don’t pay for the cost of goods, they pay for the value they provide. If you need heart surgery that takes four hours, would you pay someone the same amount to take a four hour nap instead? Probably not, but why not? According to your logic the person performing heart surgery and the person taking a nap are both using up four hours of their life, so they should get paid the same amount, right?

Consumers will pay up to the value the product provides to them [1] and producers will sell down to the costs of producing the product. So why do we have economy? We have it in order to provide consumers with goods and services they need or desire as efficiently as possible, not to make producers rich. Profits are a mechanism to steer behavior in an economy, they are not the goal. So in general the price should always get pushed towards the costs of production, that is the role of competition. In case of scarcity the value attribute by different consumers will pull the price up in order to decide the allocation of the available products. [2] This should also encourage the creation of additional supply because the costs of production are below the price so there are profits to be made and the additional supply should then drive the price down further towards costs of production.

Long story short, the price should equal the costs of production, that is the goal. Any deviation from that just exists as a signaling mechanism to steer the system and decide the distribution.

[1] Actually up to the smaller of the value the product provides to them and the money they have available, see also [2].

[2] Note that the available products do not go to the consumers valuing the products the most, they go the consumers capable to pay the highest price. With enough money I could buy up all the heart surgeries because I like collecting them and deprive everyone else of heart surgeries even though they actually need them and value them much higher than me but just do not have the necessary money to outcompete me.