They are moving to a cage, but it’s not fully implemented yet. The reason is that the traditional rings with rope was easy to slip through, tangle up, and grip. The fights were constantly stopped in ground fighting situations to get away from the ropes. By using the cage there is less need for resets and you can actually use the cage walls tactically in offensive manner.(with ropes it was used tactically in defensive manner)
No, most of MMA competitions around the world, are done outside of a cage...It can be the same as an Olympic type of wrestling, it can be a ring, it can be anything.
Nope sometimes it is in a ring.