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If quasar jets are accelerated by magnetic fields but terminate as matter dominated, where and how does the transition occur between the Poynting-dominated and matter-dominated regimes? To address this question, we study constraints which are imposed on the jet structure by observations at different spatial scales. We demonstrate that observational data are consistent with a scenario where the acceleration of a jet occurs within 103–4Rg. In this picture, the non-thermal flares — important defining attributes of the blazar phenomenon — are produced by strong shocks formed in the region where the jet inertia becomes dominated by matter. Such shocks may be formed due to collisions between the portions of a jet accelerated to different velocities, and the acceleration differentiation is very likely to be related to global MHD instabilities. © 2005 American Institute of Physics [ABSTRACT FROM AUTHOR]