The voltage drop across the emitter in an NPN transistor is not equal to zero; it varies based on the base current. The resistor RE, located after the emitter, plays a crucial role in stabilizing the transistor's operation by influencing the voltage drop across the emitter. When the base current is high, the transistor conducts, resulting in a small voltage across the collector-emitter junction, while the resistors handle most of the supply voltage. Conversely, when the base current is low, the collector-emitter junction stops conducting, leading to a larger voltage drop across it and less voltage across the resistors. Understanding these dynamics is essential for effective transistor circuit design.