This is a flat out brilliant scene, partly because it's well written, partly because it's so well performed by Hoffman and Pollack. I remember not knowing who Pollack was when I saw this, and being stunned later that he was a director and not an actor. I love his outrage in this scene - he matches Hoffman beat for beat.

My favourite line: "I did an endive salad that knocked the critics on their ass." It displays his delusion, desperation, and and pride.

"No one will hire you."
In a scene full of inventive and engaging dialogue, this simple statement, spoken three times, is the true catalyst for the entire story.

Love all the exposition they skip by cutting from "No one wants to hire you", "Oh yeah?" to Michael cruising the streets as Dorothy! No Michael looking at dresses, deciding on make-up, running the idea past his roommate, etc. Just - POW - comedic gold!

I absolutely agree with "Oh yeah" and the cut being the best part of the scene-compression of time and the language of film and all that jazz. Runner-up: the line about hiring him to send back a steak makes me laugh every time.
This scene also reminds me how much I love Sydney Pollack as an actor.