You didn't say how many miles / kms on this engine. Engines use lube oil for three reasons: leaks, wear and lack of maintenance.
Leaks are just that, look for clean oil stains on the engine and underneath - by clean I mean more oil than dirt indicating a large enough leak to carry away the dirt.
Wear of the piston rings is inevitable in any engine, good maintenance simply allows the rings to last longer. A compression test will tell if the rings are worn, if so, an engine overhaul is needed - such an engine probably has done 250K miles / 400K kms.
An uncontrollable oil user is worn valve stem seals; these plastic seals wear out and allow lube oil to be sucked into the intake manifold. Some engines have this problem much sooner than others - it's quite variable. An experienced M-B mechanic can replace the valve stem seals without removing the cylinder head, a job that costs about US$500 in the US.
Some engines suffer from lack of maintenance - specifically, oil changes. The inside of the engine gets dirty and the piston rings no longer seal as well as they should. The cure is a few frequent oil and filter changes, say every 5K km and some long trip driving so the engine really runs at a good speed for some hours.
Most auto manufacturers will tell you that 1 ltr of oil consumption per
1K km is "normal." I don't but I expect 1 l. per 8K to 10K kms from a relatively new car. The harder a car is driven the more oil it will use. If your car has done over 150K miles / 250K kms some oil usage is to be expected.
Oil you buy has specifications. The low SAE numbers, 0, 5 & 10, indicate very thin oil and the higher numbers, SAE 40 & 50, thicker oil. You should use SAE 10 - 30 in the winter and SAE 20 - 40 in the summer. Don't use very thin oil in this old engine.
Finally, don't confuse water vapor in the exhaust during cold weather with oil burning. The smoke you see upon hard acceleration is mostly soot being blown out of the engine and exhaust pipes.
I hope this helps you to understand your engine's needs, not only this one but those that you'll buy in the future.