Arkham city is just the name of the game because Arkham is the Asylum where batman enemies are where the city is called gotham, I believe they named the game Arkham city because Arkham asylum inmates have taken over Gotham
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Near the North Gotham Dock ( close to Jokers funland)
No. Arkham City is a super prison built on the the slums of Gotham City, the home of Bruce Wayne and Batman in the DC comic series. While Gotham City takes on elements of New York City, Boston, Detroit, Pittsburgh, London, and Chicago in various of the series' stories, neither it nor Arkham are real places. Arkham does however share some similarities to the NYC prison on Manhattan Island of the 1981 John Carpenter film, Escape from New York.
In the end of arkham asylum, joker was defeated in his titan form and later returned to normal. He was still in arkham asylum when you fought, so he just had to be captured by police. Harley Quinn escaped the asylum's police and broke out the joker when he purposely got solitary confinement by digging a guy's eyes out with a spoon. They eventually had to swim to the shores of Gotham, but they found that the half they were on was changed to arkham city.
Arkham Asylum came before Arkham City Asylum came out in 2009 City came out in 2011
No, Multilayer is not available on Batman Arkham City.