This article advances a theory of educational productivity based on a paradigm of classroom diversification that defines a strategic view of the education production process. The paradigm's underlying premise is that classroom student performance, and the instructional interactions that produce such outcomes, depend on economies derived from the learning relationships that exist across and among students in a classroom and on the technological fit between students' learning needs and a teacher's capacity. In addition to the conceptual classroom diversification framework, measures of classroom student diversity and teacher capacity are presented, followed by a discussion of the implications of the proposed classroom diversification paradigm for educational research, policy, and practice. (Contains 8 figures, 2 tables and 16 notes.)