Two goals midway through the first half consigned Berwick to defeat against a Queens Park side who leapfrogged them in the league table.
The defeat means Rangers have now only taken two points out of a possible 12.
The game was played at Airdrie’s Excelsior Stadium and Brian Wharton fired the home side in front after 18 minutes. Sean Burns added a second ten minutes later.
Berwick made a bright start and Paul Currie had a shot blocked whilst Paul Willis pulled a shot wide in the opening stages.
But Wharton found the net with a right foot shot from outside the box which beat Michael Andrews in the bottom corner, and after 28 minutes it was 2-0 when Burns scored in similar fashion after being set up by Chris Duggan.
Scott Maxwell then had to leave the field through injury and he was replaced by Ross Gray after 32 minutes.
Stevie Notman had a shot saved by Muir as Berwick tried to force their way back into contention, and striker Craig Dargo also pulled an effort wide just before half-time.
At the start of the second half Andy Russell replaced David Gold, and he had an early effort saved by Muir.
But Queens Park still threatened and Wharton and Duggan both went close, the latter’s effort being saved by Andrews.
As Berwick forced the issue Dargo and Willis both shot over, and then Stephen Tulloch headed wide from a corner.
Russell had another effort saved by Muir, who also fingertipped a shot away from Gray, whilst at the other end Burns pulled a shot wide.
As play swung from end to end a Kerr Young header was directed straight at Muir, David MacGregor shot over the top and a Russell effort was also too high.
But in the closing stages Russell was stretchered off the field and Rangers, having made their three substitutions, were forced to see out time with only ten men, during which time Vincent Berry shot over for Queens and Lee Currie shot wide for Berwick.
Queens Park: Muir, MacGregor, Rooney, Gallacher, Wharton, Miller, McElroy (MacPherson 89), Burns (Fraser 75), Berry, Woods (Chalmers 69), Duggan
Berwick: Andrews, Jacobs, Tulloch, Young, Notman, Gold (Russell 45’ ), Currie, Currie, Willis, Maxwell (Gray 33’), Dargo (Dalziel 64).
Referee: Grant Irvine