The easiest way is probably to adjust the DOSBox settings so you play in a larger window. The fullscreen issue might be related to your graphics card scaling, but it will be harder to fix. Is playing in a bigger window OK?
If so, you should find the configuration file for MM3. It should be in your install directory, and is probably called dosboxmm3.conf, or something like that. Save a backup copy of the file, then open it in a text editor and look for the line that says "windowresolution=original". Change that to any resolution you like, for example "windowresolution=1024x768". The window will now be larger. You can also get the game to start in a window by changing the line "fullscreen=true" to "fullscreen=false".
I like to play the early MM games in large windows, which fill most of my screen but still let me easily switch to the PDF manual or a text file for taking notes.
If you really want to get fullscreen working properly, check your graphics card settings for scaling options. You want to enable scaling but preserve aspect ratio, if possible. Those settings can be finicky though.