Tough one since there are so many memorable scenes and exchanges.
But I think the one that does it for me, by a hair, is the scene in George Fields' (Sydney Pollack) office when Michael flies off the handle because he was such a hit off-Broadway playing vegetables. Also loved the line, "This is a coast, too, George. New York is a coast." And this exchange about Jeff's play, "Return to the Love Canal":
Michael: "But it's a true story! That really happened!"
George: "Who gives a sh_it, Michael?! No one wants to watch a play about people living next to nuclear waste! They can see that in New Jersey!"
I also loved the throwaway line Geena Davis had when signing a fan's autograph and responding to a question by saying, "I don't write this sh_it, you know." Probably something every actor has wanted to say to a fan at some point.
Finally, the perfectly deadpan exchange between the producer and the cameraman, with the latter giving one of the greatest deadpan deliveries on film:
Gloria Marshall: "I want to make her look a little more attractive. How far can you pull back?"
Cameraman: "How do you feel about Cleveland?"
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