Whenever I have AC on the climate control knob is turned all the way to the cold side. I know if I turn it close towards to the hot side its not a cold. So my questions is if that's because a slight heat is turned on or if the AC is working less?

So basically if there a such thing as medium AC, or is the heat just being turned on a bit?

 

All cars with integrated A/C and heat controls modify output temps by adding heat to the mixture. The air first passes through the A/C evaporator which cools and dehumidifies, then depending on the temp setting it passes through the heater core to add back heat.

So yes, it's because heat is turned on and not really because the A/C is working less.

But, the A/C will work a bit less when you have knob turned towards warm simply because the outside air entering the car isn't as hot (and that's why you have it set to a warmer temperature).

Add-on A/C that's not integrated (under dash units typically) run the compressor less when a warmer setting is selected. But then it doesn't dehumidify as well.