Why: frame can not be infinitely large (hard to buffer, process and determine timeout, high loss penalty).
Larger MTU is associated with reduced overhead. Smaller MTU values can reduce network delay.
Large MTU: packet carries more payload, while protocol overheads, such as headers or underlying per-packet delays, remain fixed. Overall lower overhead.
Small MTU: improved network Congestion Control in layer 2, because it is less likely to retransmit.