1) When two waves combine, their algebraic sum determines the composite wave, taking into account direction, amplitude, and phase of each wave.
2) Interference occurs when waves combine, resulting in constructive interference if waves reinforce each other or destructive interference if waves cancel out.
3) A Michelson interferometer uses a beam splitter to create two optical paths that interfere upon recombination, potentially revealing distortions by an optical element under test via the interference fringe pattern.