Entropy is highest at equilibrium because disordered states are significantly more probable than ordered states, leading to maximum entropy in stable conditions. While low energy typically suggests low disorder, the relationship between energy and entropy is complex; as energy is transferred, entropy tends to increase. The third law of thermodynamics indicates that entropy approaches zero at absolute zero temperature, but in practical scenarios, systems naturally evolve towards higher entropy states. The discussion emphasizes that entropy is better understood as a measure of dispersion rather than mere disorder. Ultimately, a closed system reaches equilibrium at maximum entropy, which corresponds to a minimum energy state.