A pilot with good SA will have allowed for this when joining and spaced himself accordingly, if he still finds himself close up behind then he should go around.
Theoretically yes, but for example, on a downwind leg this then means a turn towards the active runway, the overhead, or the climb out, not always the best place to be in a busy circuit.
And for example on base leg effectively means overtaking (possibly on the "wrong" side) and cutting up on final.
I don't fly twins any more but did find it all problematical.
Final solution, don't go to busy fly-ins in a twin.