Is Multi-server Domain Configuration Required for Production?

Hi Team,

In the PeopleBook PeopleTools 8.60: System and Server Administration, it states the following PIA domain types: "The multi-server domain configuration is intended for production environments. This configuration takes advantage of WebLogic’s administration server and managed server architecture. In a multi-server configuration, multiple instances of WebLogic server are used, each contributing a specific function..."

1. Is using the multi-server domain configuration consider a best practice for a production environment (even small one?)? Why or why not?
2. Does it improve performance in general?
3. Are there any file(s) that indicate the domain type used?

Thanks,

John