We have carried out extensive and detailed photoionization modeling to successfully constrain the locations of different emission-line galaxies in optical and mid-infrared diagnostic diagrams. Our model grids cover a wide range in parameter space for the active galaxy continuum and starburst galaxies with different stellar population laws and metallicities. We compare the predicted AGN and star-formation mid-infrared line ratios [Ne III]15.56mm/[Ne II]12.81mm and [O IV]25.89mm/[Ne III]15.56mm to the observed values, and find that the best fit for the AGN is via a two-zone approximation. This two-zone approximation is a combination of a matter-bounded component, where [Ne III] and [O IV] are emitted efficiently, and a radiation-bounded component that maximizes [Ne II] emission. We overlay the predictions from this two-zone approximation onto the optical [O III]l5007/Hbeta and [N II]l6583/Halpha diagnostic diagram derived from the Sloan Digital Sky Survey, to find that the high-density and low-ionization radiation-bounded component in our two-zone AGN approximation model provides a good lower limit for [N II] emission. This establishes a new theoretical demarcation line for the minimum AGN contribution in this diagram. This new classification results by a factor of ~1.4 in a higher AGN population than predictions derived from previous divisions of star-forming galaxies. Similarly, we define a maximum AGN contribution in the [O III]/Hbeta and [N II]/Halpha diagram by using a two-zone approximation within a parameter range typical of the narrow-line region.