How Do Astronomers Now Explain the Fact That the Energy

How do astronomers now explain the fact that the energy emitting regions for quasars are so small?

A) quasars are just optical illusions caused by gravitational lensing effects
B) quasars are the result of three or four galaxies colliding: the collision squeezes the quasar to become much smaller than it normally would be
C) quasars are the result of matter falling into a black hole; the event horizons of even supermassive black holes are extremely small on the cosmic scale
D) quasars are caused by the actions of neutron stars and neutron stars have been squeezed so much that they are very, very small
E) you can't fool me, there is no plausible explanation for the small sizes of quasar energy regions