I've seen this happen on a machine with Intel graphics also. In my case
I found it was the intel kernel module deciding the native/optimal
resolution was a low one because VGA was accidentally plugged into an
inactive KVM box. I was actually only using DVI (at a much higher
resolution). Unplugging the unused VGA port solved it for me.

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https://bugs.launchpad.net/bugs/788363

Title:
  Ubuntu not using entire screen

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