A dynamic microphone is durable and self-powered. It converts a variety of sound waves to electrical audio energy. A dynamic microphone's frequency has very few limits, as it can change from one sound source to another (vocals to guitar, for example).
A condenser mic creates a much higher quality audio signal than a dynamic microphone, but is also more sensitive to loudness. It can be powered by battery or by a phantom-powered soundboard.
Since dynamic mics respond to loudness better, they are the most common choice for live sound. They are also often used to record guitar tracks in the studio. Condensers are the top choice for studio recording when it comes to vocals and other instruments. They are also beneficial for a few live channels (such as overhead drums).
Microphones can cost anywhere from 10 dollars to 10 thousand dollars, depending on age, brand, and quality. Overall, however, dynamic microphones are considerably less expensive than condensers.
Both types come in small and large sizes, corresponding to the dimensions of their inner diaphragms (the area where sound vibrates).