1.Is it possible for a computer to use multiple Graphic Cards?
-Yes, both Nvidia and AMD have this technology, with Nvidia naming its "SLI", and AMD with "Crossfire"
2.If so, how does that work?
-SLI or Crossfire only work when you have the same model (ex. 2xGTX 660 or 2x7870). Having a different model (GTX 450 with a GTX 570 will not work together). Second, your motherboard must support SLI or Crossfire (most MB are labeled if they have this feature). Both GPUs are placed in PCI Express 3.0 slots (newer GPUs) and are connected with a "bridge"
However, if you have two GPUs, that does not mean double the performance, since games arent SLI or Crossfire-friendly, but software like Adobe Suite benefit from double the CUDA cores in Nvidia.
Note: Adobe Suite supports CUDA from Nvidia, not the Stream Processors from AMD
SLI and Crossfire are used mostly for multiple monitor setups, and video-photo rendering setups
There are also Quad-SLI and QuadFire, this is when you have 4 GPUs of the same model (4x580 or 4x7870 or 2x690-the GTX 690 is a dual GPU)