(1) Dynamic programming is an algorithm design technique that solves problems by breaking them down into smaller subproblems and storing the results of already solved subproblems. (2) It is applicable to problems where subproblems overlap and solving them recursively would result in redundant computations. (3) The key steps of a dynamic programming algorithm are to characterize the optimal structure, define the problem recursively in terms of optimal substructures, and compute the optimal solution bottom-up by solving subproblems only once.