Unless you have an inverter microwave it simply adjusts the % of the time that the magnetron is turned on. So at 50% you will have the magnetron at full blast 700W for 5 seconds and then 5 seconds off (or similar timestemps). On older microwaves you may be able to hear the magnetron cycling between being on and off.
I have a new microwave and can definitely hear the magnetron cycling, but it's a fairly subtle difference in sound.